The momentum of the gold price surge at the end of last week was seen failing to continue in earlier trading this week saw a more flat price movement.
Gold trading influenced by the movement of the US dollar is difficult to give a clear direction for investors due to current factors that are seen to be mixed.
The strengthening of the US dollar on Tuesday is expected to be temporary due to profit taking factors by investors at the close of August trading.
The dovish sentiment of monetary policy by the Federal Reserve following Chairman Jerome Powell's statement at the last Jackson Hole economic conference will continue to put pressure on the US dollar while investors also remain vigilant ahead of the US NFP jobs report on Friday.
On the XAU/USD price chart which measures the value of gold against the US dollar earlier this week saw a high reached at Monday’s market opening at the 1823.00 level.
But the rise failed to continue and the price started to decline almost touching the level of 1800.00 in Tuesday's trading yesterday.
Gold prices however have not continued to decline further with the resumption of prices hovering above the 1810.00 zone continuing on Wednesday’s trading.
The price that is able to make a higher jump is expected by investors to reach the level of 1830.00 which was the price focus zone before.
The resistance zone was tested in late July and early August, but the price failed to break to higher levels.
Exceeding that level will push the price up towards the next resistance zone to be at the height of 1850.00.
On the other hand if the price shows a re -decline, the 1800.00 zone will be tested for a signal of the direction of further price movement.
The decline that continues beyond the zone is expected to return to the previous focus levels as at 1765.00 as well as 1745.00.
