The price of gold survived a fall following the US dollar moving weak again due to changes in monetary policy setting signals in the United States (US).
This is due to the statement delivered by Powell on the second day of yesterday's testimony which stated that the Federal Reserve (Fed) is getting closer to implementing an interest rate cut, but needs to assess the drop in inflation first.
Therefore, the US inflation data that will be published in the New York session shortly will be an important indicator for the market and will also have an impact on the movement of gold.
Examining the price movement on the XAU/USD chart which measures the value of gold against the US dollar, the price decline that occurred at the beginning of the week has not continued.
After leveling off above the 2350.00 level last Tuesday, the price started to show an upward pattern again on Wednesday yesterday.
Reaching a level of around 2387.00 in the New York session yesterday, the price retreated back to the level of 2370.00 when closing the trading session.
Price movement remained sluggish continuing today's trade, hovering above the Moving Average 50 (MA50) support line on the 1-hour time frame on the XAU/USD chart giving an early signal for a bullish move.
However, the determination of the price direction is based on the US inflation data that will be published shortly.
If there is a strong surge, the high level reached at the end of last week around 2390.00 will be overcome for the price of gold to record the latest high level.
The target is to go up to the 2430.00 zone as well as record the highest level in the 7-week trading period.
However, if the price falls below the MA50 line, investors should be prepared to see a more severe decline in the price of gold.
A significant drop in price could see the price reach around 2300.00 in just one trading session with the impact of important economic data in the market.
