Looking at the XAU/USD price chart which measures the value of gold against the USD, it seems that it rebounded after the RBS (resistance become support) zone of 1760.00 was unable to be broken.
The RBS zone has completely driven the movement of gold price to jump over 200 pips and once again the price is seen to successfully move to the SBR zone (support become resistance) at 1780.00.
In today's trading session (Wednesday), gold price rebounded after a slight decline and continued to move above the Moving Average 50 (MA50) barrier level on the 1 -hour timeframe to remain bullish.
The 10 -year increase in US treasury yields that reached the level of 1.60% again became one of the factors that has driven the gold price movement to make a decline.
But the influence of that outlook has been refuted by reports that most economists expect the Federal Reserve (Fed) to delay policy tightening until 2023.
As a result of that aspect, it has affected the USD currency to return weak and gave room for gold trading to rise after a bit of gloom in the past.
If the gold price surge is able to rise higher, it is likely that the price will pass the SBR 1780.00 zone first before the expectation is able to reach the 1800.00 resistance zone again.
But investors also need to take precautionary measures if the USD strengthens as it is expected to push the price of gold to show a plunge to a more severe price level.
An initial decline in the price will show a price movement towards the RBS 1760.00 zone before a lower decline to re -test the next RBS zone at the 1740.00 level.
