Can gold investors breathe a sigh of relief after seeing the price bounce back?
Not yet.
Gold trading is still at risk of experiencing a fall with the market situation which is still uncertain at the moment.
The earlier easing of risk market sentiment has reduced the appeal of gold as a safe-haven asset, seeing prices plunge as soon as the session opened earlier in the week.
Several economic data of the United States (US) are now awaited including the growth of the first quarter of 2024 and the PCE price index which is also expected to influence the change in the current value of gold.
Investors assess the change in price direction has occurred on the XAU/USD chart which measures the value of gold against the US dollar compared to last week.
The price plunge that continued in the Asian session yesterday has reached the concentration zone of 2300.00.
But the price rebounded after the US dollar weakened in the New York session affected by the reaction to the published US PMI data declining for April.
The price hovered around the 2330.00 level until continuing into the European session today (Wednesday) seeing the Moving Average 50 (MA50) barrier line being tested.
If the price fails to break it and show another decline, the 2300.00 zone will be tested again and is at risk of being breached.
If it happens, the bearish trend of the price will be more evident and the price is expected to head to the next lower concentration zone around 2270.00.
On the other hand, if prices manage to surge higher past the MA50 barrier, gold has the potential to shine again before the end of this week's trading.
The upside will try to retrace the previous week's highs with the all-time high reached at 2430.00.
