Gold trading was violent on Tuesday yesterday when displaying more active price movements made investors uncomfortable to sit still.
On the XAU/USD price chart which measures the value of gold against the US dollar has seen the price soar above the 1800.00 level with the latest high level reaching around 1815.00.
However, investors had to come to terms with the price falling below the 1800.00 level with yesterday's daily low reaching 1790.00.
The decline of around 250 pips however is seen to be supported by the Moving Average 50 (MA50) support level on the 1 hour time frame of the price movement on the XAU/USD chart which is still signaling for an uptrend.
Continuing trading in the Asian session this morning (Wednesday), the price rose again from the level of 1794.00 and slightly above the level of 1800.00 until trading resumed at the beginning of the European session.
Investors are likely to be wary of the minutes of the FOMC meeting early in the morning to scrutinize further details of the latest Federal Reserve (Fed) meeting over the course of the day.
But risk-averse market sentiment is seen to support demand for gold as a safe-haven asset.
If the price manages to maintain the rise again, the high level reached yesterday will be overcome for the price to test the price zone of 1820.00 which is one of the focus areas.
Passing the zone will push the expectation of a higher increase in the price of gold up to the level of 1850.00 which is in the SBR zone (support become resistance).
On the other hand, if the price fails to hold above the 1800.00 level and moves back below the MA50 resistance level, the price tendency is to head downwards.
The decline in the price of gold is seen to return to the support level at 1765.00 and also last week's low around 1750.00.
