Gold trading continued its upward trend for the 5th day in a row despite the various obstacles and twists and turns that the price encountered.
With current market sentiment weighing more on the US dollar than gold, gold prices are positive to continue moving higher towards the end of the week.
The next challenge is the report of the minutes of the FOMC meeting that will be published early Thursday morning tomorrow which will invite the risk of uncertainty in the current price movement.
Examining the XAU/USD chart which measures the value of gold against the US dollar, the price has managed to continue its rise yesterday until touching the 2030.00 level.
Previously, the 2030.00 zone has been the focus and several times displayed interesting reactions when in the vicinity.
After retreating slightly to around 2024.00 at the close of the New York session, prices resumed trading in the Asian session this morning (Wednesday) with a rebound.
The price remains hovering around the 2030.00 zone and is still a bullish signal with movement above the Moving Average 50 (MA50) support line on the 1-hour time frame on the XAU/USD chart.
Despite a slight retreat in the European session, the price increase is expected to continue in the following sessions that pass the 2030.00 zone.
The target to reach next is around 2050.00 or higher.
However, the risk of falling gold prices remains with uncertainty ahead of the FOMC meeting minutes report which could potentially provide support for the US dollar and pressure on gold.
The falling price moving below the MA50 support is an early signal for a bearish trend change.
The price drop is expected to reach back to the concentration level at 2000.00.
