Gold trading showed a lackluster movement on Tuesday yesterday but was seen to recover slightly continuing trading until the European session this afternoon (Wednesday).
If you look at the price of gold, it still hasn't reduced the losses suffered since the plunge at the beginning of the week after the price recorded the highest level in history.
This is because the price of gold has plunged $130 from its all-time high reached at the opening of the Asian session earlier in the week, at $2,140.
Examining the XAU/USD chart which measures the value of gold against the US dollar, the price has fallen sharply since last Monday and continued yesterday reaching around 2010.00.
Price movement was slow until the Asian session this morning and slightly increased at the beginning of the European session to the 2030.00 zone.
However, the price is seen testing the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the XAU/USD chart which will be a challenge for the price to continue to rise.
If the price manages to overcome it, investors will breathe a sigh of relief as it will be an early signal for the price to move in a bullish trend again.
The upside will break through some key resistances such as the 2050.00 and 2070.00 levels, before trying to regain the highs earlier in the week.
However, if the MA50 barrier fails to be overcome, instead bouncing back down, investors will be more alert for a further fall in the yellow metal.
The next focus level is at 2000.00 if the decline continues and the price reaction around that will be watched for an indication of the next move.
The market will assess the United States (US) ADP employment data to be published in the New York session later tonight which could provide an early picture for the NFP report on Friday.
Data that is expected to have a significant impact on the US dollar is also believed to drive the current gold price movement.
