Gold showed positive price performance on Tuesday yesterday when it successfully traded back above the important $2,000 level.
The movement pattern of the US dollar currency that strengthened at the beginning of the week changed again yesterday when the focus began to shift to the United States (US) inflation data that will be published tonight.
As an indication for the Federal Reserve (Fed) to set policy, the US annual inflation reading is forecast to decrease to 5.1% from the previous level of 6.0%. Thus, encouraging the expected depreciation of the US dollar.
If you look at the XAU/USD price chart which measures the value of gold against the US dollar, the price has shown a rise again past the 2000.00 level before slowing down around it until the end of the New York session.
The price increase that also crossed the Moving Average 50 (MA50) barrier on the 1-hour time frame on the XAU/USD chart also triggered initial expectations for a bullish movement for gold.
Price momentum was seen in the Asian session this morning when gold prices continued to rise until they reached the 2020.00 level before retreating slightly at the beginning of the European session.
If the rise in gold prices continues after this, the high level of 2032.00 reached last week will be targeted again.
If successfully overcome, the price will record the highest level since March 2022.
However, be alert if gold begins to show signs of falling in price again influenced by current factors in the market.
A drop back below the 2000.00 level will make investors ready for a further fall in gold and could lead to around 1950.00.
Next, the concentration level at 1900.00 will be the next target for the price drop which is still continuing.
