The US dollar started to show a re-strengthening in Tuesday's trading yesterday after a slow movement earlier in the week.
However, what is the relief of gold investors when even though the US dollar begins to put pressure on other major currencies, gold still manages to survive the decline.
This can be observed on the XAU/USD chart which measures the value of gold against the US dollar.
Investors start to worry when the price that has moved below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the chart becomes an early indication for a lower price drop.
However, gold prices persisted and exhibited a horizontal movement above the 1830.00 level until the New York session yesterday.
In fact, the horizontal movement continued in trading today (Wednesday) from the Asian session to the beginning of the European session.
Investors expect the increase to happen again for the price to return towards the 1870.00 level.
The zone was previously an obstacle for the price and if the price managed to break through higher, the next target is to reach 1900.00.
On the other hand, if the US dollar continues to strengthen and eventually pressures gold to fall lower, a decline will be expected to pass the 1830.00 level, which is a support during price making.
Further decline is seen to reach up to around 1800.00 which is one of the price focus zones before.
