The price of gold continued to take the opportunity to continue to drive the price movement to keep flying higher than 200 pips in Wednesday's trading amid the decline displayed by the USD.
The USD is still receiving deck pressure as most analysts issue expectations that the Federal Reserve (Fed) is likely to delay interest rate hikes until 2023.
However, the gold price movement was not able to soar further as it was constrained by concerns over the Evergrande issue as well as the 10 -year increase in US treasury revenue.
Judging by the XAU/USD price chart which measures the value of gold against the USD, it seems that it continues to reach the RBS (resistance become support) zone of 1780.00 and remains an uptrend.
However, the price movement is seen moving slightly horizontally and slowly in the RBS zone in anticipation of the opening of the New York session which is expected to return to vigor.
The price spike trend displayed also seems to still remain with the uptrend pattern and continue to trade above the Moving Average barrier level (MA50) if observed on the 1 hour time frame.
If the USD continues to be dragged down weak in the New York session in the near future, it is likely that gold prices are expected to pick up even more to test the 1800.00 high reached last week.
At that high level will be evaluated by investors to see the reaction of the next movement before expectations reach a superior resistance level and will record the latest highs.
But if the price fails to maintain the momentum of the surge, the price will head back to the RBS zone at 1760.00 before declining to the lower RBS zone around 1740.00.
