The United States (US) retail sales data for August published in the New York session yesterday showed a positive figure that exceeded market expectations but did not surpass the previous figure.
The data supporting the strengthening of the US dollar also affected the gold market, seeing the precious metal weaken, but the situation did not last long.
Now investors are waiting for the results of the interest rate meeting by the Federal Reserve (Fed) which will affect the movement of gold prices for a long period of time.
A cut of 50 basis points is still a bet for investors with a percentage of 61% compared to 25 basis points.
On the XAU/USD chart which measures the value of gold against the US dollar, on Tuesday the price weakened by making a drop to the 2560.00 level but rebounded slowly at the end of the New York session.
Price movements that are below the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the chart give a bearish signal for gold trading.
If the price continues to drop lower after this, investors will expect the price to react at the 2530.00 level which is seen as the RBS (resistance become support) zone.
If the price breaks down lower, the 2500.00 level becomes an important point before the next focus to the 2470.00 zone which is expected to invite a price-pulling reaction.
Meanwhile, in order to expect the price to increase, the level of 2590.00 needs to be crossed first before the price makes history with the latest highest level.
The closest target is at 2600.00 which analysts expect for this time.
