Gold investors remained cautious for the trading of the commodity since the beginning of this week which still displayed a relatively flat price movement.
Influenced by the movement of the US dollar currency, investors are wary of a mixed view by Federal Reserve (Fed) policymakers for their next monetary policy setting.
This follows the United States (US) NFP employment data report published last Friday showing a somewhat mixed reading although employment growth in May was much higher than forecast.
On the XAU/USD price chart that measures the value of gold against the US dollar, we see a horizontal movement of the gold price in the range between 1965.00 to 1955.00.
Investors are placing expectations for gold prices to show a surge as the price is still moving above the Moving Average 50 (MA50) support level on the 1-hour time frame on the XAU/USD chart.
However, at the beginning of the European session today (Wednesday), the price dropped slightly to the level of 1955.00 testing the MA50 support and the price reaction was scrutinized by investors.
If price bounces back up to remain hovering above the MA50 support, the high reached yesterday will likely be attempted by price.
Next, the price is expected to continue climbing towards the resistance zone at 1980.00 which has been a price barrier for trading in recent weeks.
The concentration level of 2000.00 is waiting to be touched again if the price increase continues successfully.
Meanwhile, if the price drop in today's European session continues into the next session, the 1950.00 zone is seen to be tested.
If it breaks lower, the price is seen to have the potential to surpass the lowest level reached last week around 1932.00.
Next, the price of gold will record the latest 12-week low with a target of 1900.00.
