Since last Friday, the price of gold has been moving flat below the $ 1,800 price level with the lowest level of support being in the $ 1,765 zone after a significant decline was displayed.
The horizontal movement of the price continued in earlier trading this week as can be seen on the XAU/USD price chart which measures the value of gold against the US dollar in the market.
The price recorded a rise of 200 pips yesterday past the Moving Average 50 (MA50) barrier level on the 1 hour time frame of price movement.
Continuing on Tuesday's trading, the price showed a decline and retested the MA50 level to signal the direction of further price movements to investors.
However, investors are likely to be cautious while awaiting a speech by Federal Reserve (Fed) Chairman Jerome Powell for clues on central bank policy that will affect the US dollar and also move gold trading.
The price support zone at 1765.00 will be tested if the price makes a decline again to continue the bearish trend movement.
The 1745.00 level is seen to be the next target of the price with the expectation for the gold price to return back to the 1700.00 focus level.
If the price manages to make a rise, passing the 1800.00 level will give an early signal for a change in the bullish trend.
A higher rise will make the level of 1850.0 as the initial target which is in the SBR zone (support become resistance) after passing the rise above the previous level of 1820.00.
