The gold market was somewhat gloomy at the beginning of this week as investors were still awaiting the release of consumer price index (CPI), producer price index (PPI) and unemployment benefit claims data on Wednesday and Thursday.
The low CPI figure will further strengthen the expectation of the decision for the Federal Reserve (FED) to reduce interest rates this month.
However, investors are looking forward to the number of basis points that the FED will cut by either 25 or 50 basis points, although most investors expect a non-aggressive cut of 25 basis points.
Based on the XAU/USD chart that measures the value of gold against the US dollar on Monday, the price of gold showed a resurgence past the 2500.00 level after moving up from around 2490.00.
As for the gold price movement on Tuesday, if the price wants to continue to rise, investors will look forward to the 2530.00 level which is a resistance zone that the price has not been able to penetrate before.
Before the price reaches that level, investors will look for a price reaction at the 2508.00 level which is the current barrier to be crossed for a higher move to occur.
Passing that price will give a clearer signal for the price to reach the 2530.00 level that investors are waiting for.
If the price wants to show a bearish trend after falling below 2500.00, the level of 2485.00 will be the focus that is expected to show an attractive price reaction.
Exceeding 2485.00 indicates that the price still tends to continue its decline to the level of 2470.00 which is expected to be the focus of buyers.
