The movement of gold on Tuesday yesterday was more flat and failed to provide a clear direction for investors when the market sentiment was considered to be still risky.
Driven by the value of gold in the market, the US dollar traded gloomy although the risk-off sentiment usually drives the strengthening of the king of the currency.
Market-minded analysts are cautiously awaiting the release of FOMC meeting minutes for scrutiny after the hawkish tone delivered by the Federal Reserve (Fed) following a 75 basis point interest rate hike for the fourth time in a row.
The XAU/USD price chart which measures the value of gold against the US dollar sees the price still flat above the 1733.00 zone after the price dropped to that area during the decline earlier in the week.
It becomes a price movement marker for a bearish trend when the Moving Average 50 (MA50) obstacle level in the 1-hour time frame on the XAU/USD chart remains constraining the price to make an increase.
The barrier situation continued today (Wednesday) despite a slight increase in the early European session as investors remained cautious of the horizontal movement.
If the price shows a lower decline, the price will drop towards 1720.00 to test the RBS (resistance become support) zone.
The continued decline is seen to go to the 1700.00 and 1680.00 zones which are the price focus zones in the previous trading.
On the other hand, if the price makes an increase again, the resistance at 1760.00 will be tested before the zone is successfully penetrated by the price at the end of last week's decline.
Successfully crossing the zone will push the price back towards the resistance zone at the height of 1785.00 which was reached last week.
