Gold trading showed a recovery today (Thursday) after the decline in prices that occurred yesterday, but not enough to ease the worries of gold investors at the moment.
The price movement in a low range these few days adds to investors' vigilance ahead of the United States (US) inflation data report in the New York session tonight.
The latest reading of the consumer price index (CPI) will provide an indication for the setting of the Federal Reserve's (Fed) monetary policy and will also affect the US dollar and gold.
It can be observed on the XAU/USD chart that measures the value of gold against the US dollar, the price is still flat in the 2030.00 zone for several days.
The price movement is also seen hovering around the Moving Average 50 (MA50) line on the 1-hour time frame on the chart which investors are watching for an indication of further direction.
Trading in the Asian session this morning saw the price start to rise from the 2024.00 level and rise to around 2034.00 crossing the MA50 barrier.
Price movements in the New York session shortly when the CPI data is published will determine the trading pattern for the week ahead.
If gold prices rise, the 2050.00 level will be the initial resistance tested as observed last Friday.
Breaking through the 2050.00 level will then target the 2070.00 zone or higher on the continued price increase.
However, investors also need to prepare for the price of gold to plummet.
The decline will mark a recent 4-week low with an important concentration zone at 2000.00 expected to be hit by the price.
