Gold investors had to turn a blind eye in August's opening trade yesterday as they saw the precious commodity's dismal performance decline.
There was a price drop until the end of the New York session which brought a risk signal to investors for gold trading.
This is driven by the strengthening factor of the US dollar which is still continuing, but the price of gold recovered slightly in the Asian session today (Wednesday) due to the momentum of the US dollar being somewhat stunted.
If examined on the XAU/USD chart which measures the value of gold against the US dollar, the price that fell to 1941.00 yesterday has returned to hovering at 1950.00 today.
However, the slow price movement below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the XAU/USD chart, which still gives a bearish signal, is not enough to relieve investors yet.
The price is still at risk of falling again in the following sessions above the level reached yesterday.
However, price movements in the New York session will soon be driven by the publication of the United States (US) ADP employment data report.
If the price plunges lower, keep an eye on the 1930.00 zone which is expected to react for further movement indications.
If the penetration is lower, the price of gold is at risk of falling to around 1920.00 which was previously also the focus for the price.
However if price excels at making a move above the 1950.00 level, price recovery will return to last Friday's highs around 1972.00.
If the resistance is successfully overcome, the price will go to the important resistance zone of the July trade which is at 1980.00.
