Gold trading has been seen moving flat since the beginning of this week with market sentiment somewhat mixed affecting the movement of the US dollar and also influencing changes in the current value of gold.
It can be observed that the price movement on the XAU/USD chart which measures the value of gold against the US dollar remains above the level of 1720.00 with the Moving Average 50 (MA50) level on the 1 hour time frame being the support level for the uptrend signal.
There are still no indications for gold prices to plummet again as investors are also wary of trading the US dollar ahead of the FOMC meeting which is the main focus event this week.
After rebounding from the 1700.00 level at the end of last week, analysts expect the price of gold to continue to rise again up to the 1800.00 level.
However, resistance levels such as 1745.00 and SBR (support become resistance) zone 1764.00 need to be broken by the price first for a clearer signal.
Investors remain vigilant for the situation of falling gold prices if the US dollar regains strength in the level as there are several factors that support the US dollar such as an increase in US treasury yields.
The decline will be supported at the 1720.00 level before the lower decline will re -test the 1700.00 support level.
Also alert to the development of US-China sentiment with reports of disputes between the two world economies.
The FOMC meeting in the early hours of Thursday morning will drive the movement of gold prices after this in anticipation of aggressive price volatility.
