The range of gold price movement was seen narrowing after investors got a clearer signal that the strengthening momentum of the US dollar had ended after a speech by Federal Reserve (Fed) Chairman Jerome Powell on monetary policy.
As shown on the XAU/USD chart which measures the value of gold against the US dollar, the rise from the 1765.00 level at the beginning of the week failed to break the 1790.00 level as of Tuesday's trading.
The price started to decline again and flattened above the level of 1770.00 continuing in today's trading (Wednesday).
The US manufacturing and services PMI data is the focus of investors which will be published in the New York session soon to see the reaction of the further movement of the US dollar and also affect the movement of the value of gold.
If the decline occurs again, the support zone at 1765.00 will be re -tested which is seen as the level that will support the rise again.
If the price continues to plunge lower below that level, the next target levels are at 1745.00 and 1720.00.
As for the price increase, the level of 1800.00 will be a resistance for the price that will prevent a higher increase.
However, if the price manages to continue to rise, investors will expect the rise in gold prices to return to the SBR zone (support become resistance) at 1850.00.
