The movement of the price of gold is still flat but increasingly shows a pattern of rising prices despite the slow rise exhibited.
This is due to the depreciation of the US dollar in the market as investors return to optimism over the United States (US) economic stimulus package to reach an agreement before the presidential election.
However, the depreciation of the US dollar is not so significant in a market environment that is still wary of any change in sentiment that could change the direction of price movements.
For now, the price of gold remains trading above the $ 1900 level which has been the price support level since last week.
On the XAU / USD chart, the price several times tests the support level of 1900.00 before moving above the support level of Moving Average 50 (MA50) in the 1 hour time frame of the price movement.
Yesterday's daily high is just testing the SBR zone (support become resistance) around 1914.00 which is a resistance to the price increase over the past few days.
However, continued trading today (Wednesday) has seen prices move higher past the zone with the expectation of an uptrend.
The next increase is seen to test the resistance zone last week around 1930.00 to allow the price to record the latest high level of 4 weeks above that level.
The price decline will make the 1900.00 level an indication of a bearish trend change for the gold price.
A lower decline is expected up to the nearest support zone around the level of 1875.00.
