On the XAU/USD price chart which measures the value of gold against the USD has seen a rise of almost 150 pips in yesterday’s trading session (Tuesday) to tear the 1830.00 resistance zone.
Having conquered record highs, gold prices seem to be back on the market movement today (Wednesday) and continue to move in the resistance zone towards the opening of the New York session later.
However, the decline also re -tested the resistance level of the Moving Average 50 (MA50) on the 1 -hour time frame but once again it made a jump and remained with a bullish trend.
Concerns over rising inflation as well as the fall of the greenback dollar are a bit of a factor as to why gold trading has managed to hit a recent 9 -week high.
The issue of the United States (US) inflation rate tonight which is expected to increase following the US producer price index data has been published with a slightly higher reading than before.
High inflation rates are likely to be able to drive gold price movements to continue flying more aggressively.
But the issuance of high inflation rates could also be a factor in pushing pressure on gold prices to fall back.
The resistance level of 1830.00 will probably be used as a focus level to test for investors to see if the momentum of this surge can be continued or vice versa.
High probability will see the gold price movement to climb to the next resistance zone at 1850.00 and is expected to be able to strengthen in recording the climb.
If the price of gold reacts again to fall, the level around 1813.00 will be the first level to be targeted before the price continues to plunge into the RBS (resistance become support) zone of 1800.00.
