Despite moving at a slow momentum, gold trading is still seen to be showing gains heading into this weekend’s trading.
The attraction of gold assets began to increase after US inflation data was published to the latest highs as expected.
On the XAU/USD price chart which measures the value of gold against the US dollar has seen the price rise to the level of 1981.00 in Wednesday’s trading yesterday after rising from the level of 1950.00 the previous day.
The price is still giving an indication for a bullish trend movement where the price remains above the Moving Average 50 (MA50) support level on the 1 hour time frame.
After the focus on US inflation data began to subside, attention shifted back to the development of the still -tense Russia -Ukraine conflict.
Investors put expectations for the price of gold to continue its rise towards the highs of 2000.00.
However, if the price falls below the 1970.00 zone and also passes the decline below the MA50 support level, investors need to be prepared for a change in the trend for gold.
The target for the initial decline will test the level around 1950.00 first before signaling to continue the decline lower.
A clearer decline in the price for the movement of the bearish trend will push the price towards the support zone at 1900.00 which has been the focus for some previous declines.
