It seems that gold is not yet fully ready to trade stronger when the price gains displayed in the European session again failed making a re -decline in the New York session.
As observed the price movement on the XAU/USD chart which carves the value of gold against the US dollar, the price has managed to move past the resistance at 1950.00 yesterday before the high level was reached at 1970.00, testing the SBR (support become resistance) zone.
Investors are now vigilantly awaiting the release of US inflation data which is expected to affect the current gold movement.
The price decline on the XAU/USD chart yesterday however still shows a movement in a bullish trend supported by the Moving Average 50 (MA50) support level on the 1 hour time frame.
In the Asian session trading this morning (Tuesday) as well, the price is seen again moving above the level of 1950.00 but at a weak momentum.
If the price manages to surpass the 1970.00 SBR zone, a higher rise will be expected for the gold price to reach the target to the 2000.00 level.
Yet if gold prices plunge lower after failing to hold on, a decline below the MA50 support level gives an indication for a change in the bearish trend for gold.
Then the price is expected to decline towards the support level at 1900.00 after a few weeks the zone managed to prevent the fall of gold lower.
The continuing lower decline is seen to reach the level of 1870.00 to test the focus zone.
