A little relief, but not enough to heal the wounds in the hearts of gold investors.
Gold prices moved more flat on Tuesday after a sharp drop in early trading last week.
The movement of the US dollar currency, which affects the value of gold, is expected to continue to be risky as questions continue to arise about monetary policy by the Federal Reserve (Fed) ahead of next week's FOMC meeting.
However, yesterday's New York session still saw the US dollar show a strengthening which was also supported by the market sentiment factor which was considered risky with Russia-Europe tension regarding the oil issue and the heat of the Russia-Ukraine war being the focus.
On the XAU/USD price chart which measures the value of gold against the US dollar, the price has plunged to the level of 1766.00 last Monday, but leveled above that level on Tuesday yesterday.
The gold price movement range yesterday between 1766.00 and the height of 1781.00.
The price that is still below the barrier level of the Moving Average 50 (MA50) on the 1-hour time frame on the XAU/USD chart indicates that the price movement remains in a bearish trend despite being flat for a while.
A further drop in gold prices will be expected to test the RBS zone (resistance become support) at 1760.00.
If the zone fails to rebound the price, instead the price falls lower and breaks through it, the price will go down to the next concentration zone which is seen to be around 1733.00.
Meanwhile, for the expectation of an increase in the price of gold, the price needs to pass the 1780.00 zone and the MA50 barrier first to mark the initial signal of a trend change.
The continued price increase will retest the key target zone at 1800.00 after the price fell from that height earlier this week.
