Market risk-off sentiment has prompted market players to shift towards safe-haven investments with a number of factors being the focus at the moment such as the oil crisis as well as Russia-Ukraine geopolitical tensions.
Thus, the gold commodity is also seen to benefit in this situation where the value of gold managed to rise as the US dollar traded mixed ahead of the impending FOMC meeting.
On the XAU/USD price chart which measures the value of gold against the US dollar, investors saw gold prices hit the latest highs again this week.
After jumping in last week's trading past the level of 1830.00, the price began to flatten above the level of 1830.00 as a new support level of the price thus forming the latest RBS (resistance become support) zone.
Continuing the trading earlier this week, the price managed to jump from the zone to reach a high of 1854.00 at the end of the New York session yesterday.
But in today's trading (Wednesday), the price moved slowly and slightly declined since the Asian session continued into the European session.
The Moving Average 50 (MA50) support level on the 1 hour time frame of price movement for investors to evaluate the price reaction at that level for the expectation of the next price direction.
The higher rise is expected to continue past the latest highs reached to head to the resistance zone at 1870.00.
The altitude zone was previously tested last November, but gold prices failed to fly higher.
On the other hand if the price goes back to losing again making a decline, the RBS 1830.00 zone will be tested whether it is still able to support the price increase again or is broken.
If the price plunges past that zone, the decline will first test the 1810.00 price zone before going to the 1800.00 focus zone.
