Gold appeared violent over the weekend after being affected by the release of U.S. inflation data which recorded the highest annual reading since 1982 despite a slight monthly reading for November.
Thus, the factor has completely realized the opportunity to drive the price of gold back up while waiting for the results of the FOMC meeting which will take place on Thursday morning.
At the same time, investor confidence is seen growing to see the Federal Reserve (Fed) implement a reduction in bond purchases earlier as noted earlier.
The price movement on the XAU/USD chart which measures the value of gold against the USD saw a jump of around 200 pips at the close of last week's trading which at the same time ruined the bearish trend displayed.
After soaring high, the price of gold seemed to make a rebounce on the resistance trendline in the New York session on Friday before returning slowly and closing the trade with a bullish candle.
This also illustrates that the price of gold still does not have the right direction in line with the movement which continues to remain moving horizontally over a period of 9 days.
If the encouraging reading of the US inflation data continues to influence the surge in gold prices, the SBR (support become resistance) zone of 1800.00 will definitely be the focus.
While the indicator is even more significant in giving a picture of a strong bullish trend will be strengthened if the price continues to soar to return to reach the next SBR zone 1830.00.
Yet in a different tone, the 1760.00 support zone will continue to remain the first direction to be reached first if the price of gold continues to sustain its decline.
The decline in the price above the support zone will indirectly push the price to create the latest lows which are expected to return to the support zone of 1740.00.
