The current price movement of gold is influenced by changes in the value of the US dollar in the market while investors await the release of important economic data from the United States (US) this week.
Ahead of US inflation data to be published in tonight’s New York session, gold prices remain moving flat below the $ 1,800 price zone.
If we examine the price movement on the XAU/USD price chart which measures the value of gold against the US dollar, the 1800.00 zone is still a barrier for the price to rise to higher levels.
Several times the price was seen testing the zone but failed to break it since last week until trading resumed earlier this week.
The Moving Average 50 (MA50) barrier level on the 1 -hour time frame on the XAU/USD chart is also seen blocking the rise in gold price to signal a bearish movement.
The decline however needs to pass the support level of 1785.00 which has been the focus since last week, to give a clearer indication of the bearish movement.
Exceeding that level will expect the price to drop to test the 1765.00 level before reaching the 1745.00 level which is lower for the price to retest the price level that has been the focus before.
On the other hand if the price manages to jump past the 1800.00 barrier, a higher rise in the price of gold will be expected to test the 1810.00 zone.
The continued rise will lead to the 1830.00 resistance to test the highs reached in early September.
