Gold trading from the beginning of the week showed no significant price changes with movement remaining in a slow range.
There was a drop in the price of gold in the European session yesterday before the price recovered to increase in the New York session.
The increase in prices was driven by the continuing depreciation of the US dollar following the reaction to the United States (US) retail sales data that was published with a declining reading for May.
Thus giving room for the price of gold to rise again, but the price movement is seen to be limited.
Investors examine price movements on the XAU/USD chart which measures the value of gold against the US dollar.
The price which first fell to around 2307.00 then bounced back to the 2330.00 level at the end of the New York session.
The price gives a bullish indication when it is back above the Moving Average 50 (MA50) support line on the movement in the 1-hour time frame on the XAU/USD chart.
The horizontal price movement throughout the Asian session this morning (Wednesday) continues to the opening of the European session at the 2330.00 zone.
If an energetic surge is able to be exhibited in gold prices, the previous concentration level around 2340.00 is likely to be overcome before continuing the climb higher.
The next target for bullish price movements is towards the 2380.00 zone which was the focus of the previous trade.
Meanwhile, for the expectation of a drop in gold prices, the support zone at 2300.00 is an important focus area that will give an indication of the direction of further movement.
If a further decline occurs, the price is targeted to head towards the 2270.00 zone.
