The movement of gold prices remained gloomy towards the end of the week with the release of US inflation data yesterday which was the focus did not have such a significant impact on prices.
On the XAU/USD price chart which measures the value of gold against the US dollar was seen flat in the 1850.00 zone yesterday after the price decline on Tuesday almost hit the 1830.00 zone to record the latest 3 -month low.
There was an early decline in prices as a follow -up reaction to the published US inflation data with the price declining briefly to around 1835.00 before rebounding and closing the New York session trading flat in the 1850 zone again.
The flat situation continued in Thursday's trading but investors are still evaluating for early indications of a bullish trend change as the price tries to move above the Moving Average 50 (MA50) support level on the 1 -hour time frame on the XAU/USD chart.
However, the rise in gold is difficult for investors to expect as the US dollar is seen to be dominating the market at the moment and putting pressure on gold trading.
If the gold price continues to decline, the support zone at 1830.00 will be tested again to give an indication of the direction of further movement.
If the support zone fails to contain the more severe fall of gold, the latest lows will be recorded with the target heading towards the focus zone around 1800.00.
On the other hand if the gold price manages to signal a clearer bullish trend change, the rise will be expected to pass the resistance at the 1870.00 zone.
Continuing higher gains will push price expectations to test the 1900.00 zone which was the focus of last week's trading.
