The focus now continues to shift to the release of US inflation data to be released on Friday in playing an important aspect in influencing the trajectory of gold trading.
The release of US inflation data will indirectly impact the decision to be implemented by the Federal Reserve (Fed) in implementing measures to increase interest rates.
A positive reading is expected to deter gold from continuing to soar even though at this point geopolitical tensions have contributed to the rise in the metal's assets.
The XAU/USD price movement which measures the value of gold against the USD seems to be starting a strong rhythm after the price showed a spike in the New York session on Tuesday until the end of the session.
The surge also showed continuation in trading today (Wednesday) to hover above the RBS (resistance become support) zone of 1780.00 as well as the Moving Average 50 (MA50) barrier level.
This situation can of course be said to give an early signal of a trend change after the price forms a morning star pattern on the weekly timeframe that drives the bullish trend.
Therefore, the SBR 1800.00 zone, which has often been the focus in the past, will remain the zone that will be reached first before investors see a more significant bullish trend.
Breaking the SBR zone can completely support the movement of gold price to reach the next target observed in the SBR zone of 1830.00.
But on the other hand, if the price regains pressure to continue making declines, the RBS 1780.00 zone will certainly be overcome again before it is expected to be able to track the 1760.00 zone.
