The horizontal movement of gold since the beginning of the week continued until trading resumed today (Thursday).
Gold which often shows a correlative movement against the US dollar has not shown a significant reaction even though the US dollar has moved against the direction with several factors influencing it since last weekend.
Market analysts see the situation as a cautious attitude of investors awaiting the results of the US NFP jobs report on Friday.
However, gold investors are still optimistic about the rise in the value of gold following the US dollar which is seen to be moving weak following a dovish statement by Federal Reserve (Fed) Chairman Jerome Powell at the Jackson Hole conference last week.
On the XAU/USD price chart which measures the value of gold against the US dollar, the rally reached on Wednesday yesterday failed to surpass this week’s high reached in the Asian session last Monday at a high of 1823.00.
The 1810.00 price zone is seen as a support zone for the horizontal movement of the price until trading resumes the European session this afternoon.
Higher gains are expected towards the 1830.00 resistance after the zone was tested in July and early August.
For a possible bearish situation, the 1800.00 zone will be retested which is seen as a support zone to curb the lower fall in the price of gold.
A drop below that level will signal for a bearish movement with the bearish target going towards the previous focus zone at 1765.00 as well as 1745.00.
