Gold trading did not show any movement that excited investors, just flat throughout Wednesday yesterday.
Still influenced by the US dollar currency, the price of gold is difficult to climb higher as the king of the currency is traded again recovering from the previous decline.
This is driven by data published in yesterday's New York session involving a consumer confidence survey and rising US home sales data.
Some more US economic data will be in focus next as the final reading of the third quarter US economic growth will be published today and then the US personal consumer expenditure (PCE) data on Friday.
If the present figures continue to be positive and support the US dollar to continue to be strong, this situation will make it difficult for gold to continue its price increase.
If you look at the price movement on the XAU/USD chart which measures the value of gold against the US dollar, the price has been flat below the 2050.00 level for 6 consecutive days since the surge in the previous week towards the resistance zone.
Investors are also watching price movements hovering over the Moving Average 50 (MA50) line on the 1-hour time frame on the chart to look forward to a clearer direction for gold.
If the US dollar maintains further strengthening, gold prices are at risk of shrinking again at the end of the week.
The target level for the decline is towards around 2000.00 again or if it breaks lower, the 1980.00 support zone will be observed.
However, if the price of gold finally manages to rise above the resistance of 2050.00, the tendency for the price to rise suggests that the level of 2070.00 will be reached.
However, various situations can arise and gold prices are expected to be volatile heading into the trading sessions at the end of this week.
