Even though it is not very encouraging, the gold trading on Tuesday night was seen again showing the pattern of its price recovery.
Compared to the decline at the beginning of the week, gold prices showed a rebound following the ongoing depreciation of the US dollar currency.
The US dollar failed to strengthen even though the United States (US) export price index (PPI) data was published with figures that rose higher in April compared to forecast.
Further clues will be seen in the US consumer inflation report (CPI) in the New York session this evening.
Paying attention to price movements on the XAU/USD chart which measures the value of gold versus the US dollar, the price which fell to level 2332.00 at the beginning of the week shows an increase overnight to around 2359.00.
The price increase in the New York session was seen crossing the 50 Moving Average (MA50) resistance line on the 1 hour time frame on the chart, providing relief to investors who saw signs of a bullish movement for gold.
Price movement was somewhat flat in the Asian session this morning with expectations for continued increases after reaching last week's level again at 2378.00.
If this high is successfully overcome, the price will aim to return to the 2430.00 zone which was previously the highest record for gold prices.
However, investors need to be prepared if gold prices plunge again following the reaction to published inflation data.
A price decline below the MA50 line will push prices lower than the level reached at the beginning of the week.
Next, the support zone for a continued decline in prices is around 2300.00.
