Gold investors had to endure the throbbing of the gold price movement which is still raging this week due to unexpected price fluctuations.
This situation can be seen on the XAU/USD price chart which measures the value of gold against the US dollar as investors are watching for clearer direction.
By assessing the movement of the US dollar that affects the price of gold, there was a strengthening of the currency at the beginning of the New York session supported by the statement of members of the Federal Reserve (Fed) who tend to be hawkish for their monetary policy.
Initially, the price is seen to make an increase to break through the important zone of 1900.00.
After reaching around the 1904.00 level, the price then sharply plunged back below the 1900.00 level and reached the 1889.00 level.
After that, the falling price tested the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the XAU/USD chart and bounced back towards the end of the New York session.
Continuing trading in the Asian session today (Wednesday), the price that opened below the 1900.00 zone managed to display an increase past 1900.00 and overcome the height reached yesterday.
If the rise continues higher, the price target is to reach 1920.00 again after the 1910.00 level is successfully overcome.
The price movement also shows that the bearish trend last week has changed.
On the other hand, if the price of gold plunges back below the 1900.00 zone, investors will be ready for another fall like in previous weeks.
The decline is seen to retest the 1885.00 support level which has been tested several times since last week and earlier this week.
