Gold trading showed a more positive movement situation on Tuesday yesterday when it managed to recover from the price drop at the beginning of the week.
The price of gold has crossed the $2,400 level on a surge in the New York session yesterday although the US dollar showed a strengthening at the beginning of the session following the economic data of the United States (US) published with good readings.
However, the market situation is still in an uncertain state ahead of the FOMC meeting early Thursday morning which is being awaited by investors.
Examining the XAU/USD price chart which measures the value of gold against the US dollar, a bullish price movement signal was displayed on Tuesday yesterday hovering above the Moving Average 50 (MA50) support line on the 1-hour time frame.
The surge in the New York session has passed the 2400.00 level tested earlier in the week before reaching a high of 2412.00 at the close of the session.
The slow price movement started at the beginning of the Asian session this morning before the price resumed the rising pattern towards the target level of 2430.00.
However, after the price reached around 2425.00, the flat price resumed trading in the European session.
Analysts see the price of gold will touch again the level of 2430.00 like last week but the price reaction at that level will be observed.
If the situation is the same, i.e. the price rebounds and falls again, it is possible that the price can decline again below the 2400.00 level.
Passing the MA50 support would suggest a further decline in the price of gold towards last week's low around 2352.00.
However, if the price manages to break through the resistance of 2430.00, the price will continue to rise to be on the previous track to hunt for the latest record high in history.
