Gold trade unnerved investors by showing a flat price movement as investors wary of any possibility ahead of the focus of the FOMC meeting minutes to be published.
Further details after the monetary policy discussion at the latest meeting will be scrutinized for any new indication of interest rate cuts by the Federal Reserve (Fed) that could affect gold prices.
In Fed Chairman Jerome Powell's latest speech at the EBC forum yesterday, inflation is moving toward the central bank's target but policymakers need stronger data to convince them to cut rates.
ADP employment data will be watched first at the start of the New York session tonight before the next lead will be assessed on the NFP jobs report at the end of the week.
Examining the XAU/USD price chart which measures the value of gold against the US dollar, prices showed positive movement in the European session today with rising prices trying to break out of the flat zone earlier in the week.
Investors have got an early signal for a bullish move as the slow-moving price in the Asian session this morning has been above the Moving Average 50 (MA50) support line on the 1-hour time frame of the chart.
After leveling at the 2330.00 level, the price has shown an increase approaching the height of 2350.00 as well as overcoming the resistance level at the beginning of the week around 2338.00.
If the move higher successfully continues, the 2380.00 target zone has the potential to be reached for the price to record a recent 4-week high.
However, it is not impossible for the price to plunge again when the market reacts to important data that will be published later.
The drop in price is expected to stop again at the 2300.00 support zone like the trading situation last week.
If it breaks lower, the price is expected to reach around 2270.00 and increase the risk of a worse fall for gold.
