Gold commodity trading continued to be hit by the strengthening pressure of the US dollar causing the yellow metal to experience continuous depreciation for several consecutive weeks to new lows.
The decline continued to be displayed in yesterday's trading recording the latest low since August 2021 hitting the price level around $ 1,700.
However, after hitting that level, gold was seen slightly higher at the end of the New York session yesterday after the release of US production inflation (PPI) data showed an increase of 1.1% higher than the expected 0.8%.
This follows the US consumer inflation (CPI) data reading which rose to 9.1% in June, the most recent increase in 40 years.
The price movement on the XAU/USD chart which measures the value of gold against the US dollar saw the price have managed to make a further decline breaking the support zone of 1720.00 in European session trading yesterday (Thursday).
However, the price of gold began to be seen moving horizontally after hitting the latest low of around 1700.00 continued in today's trading (Friday).
The movement of gold price which is still moving below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame remains bearish.
If the bearish pattern continues, the price is likely to extend the decline to the latest 11 -month low with the next target expected to reach the level of around 1680.00.
On the other hand if a change in the direction of the gold price starts to take place, a higher surge in the price is likely to retest the MA50 barrier before extending the rise to the resistance zone at 1760.00 after passing the important level of 1720.o0.
A higher rise in the price of gold is likely to reach back to the 1785.00 zone and head back to the 1800.00 focus zone for a bullish movement of the gold price again.
