Gold commodities traded flat earlier in the week on the gloomy US dollar movement following the US public holiday, with investors now focused on the release of US services PMI data from the ISM survey after investors saw a lackluster reading last week on US manufacturing survey data. .
The movement of the US dollar remained slow continuing today (Tuesday) following investor vigilance ahead of the FOMC meeting minutes report and further on the US NFP jobs data report over the weekend.
The FOMC minutes will provide a detailed look behind the announcement of an interest rate hike by the Federal Reserve (Fed) on an interest rate hike by 75 basis points to fight inflation at the latest meeting.
In addition, there was a slight increase in US 10 -year bond yields, making gold commodity trading limited.
Note the price movement on the XAU/USD chart which measures the value of gold against the US dollar, the price of gold has rebounded above the 1800.00 zone after last Friday’s decline had reached 1785.00.
The price moved flat throughout Monday's trading with the Moving Average 50 (MA50) support level on the 1 -hour time frame on the XAU/USD chart seen supporting the gold price from falling again.
Continuing trading today (Tuesday), the price was seen slightly higher in the Asian session but still in a slow movement with the zone around 1810.00 being an obstacle for the price to continue rising like yesterday's trade.
The decline in the price of gold began to be seen in the European session this afternoon with the price heading back to the important zone of 1800.00 before the expected decline to continue to hit again at the support zone of 1785.00 which was tested last Friday.
A lower decline beyond the zone will record the latest low in gold prices for a period of 7 weeks.
On the other hand if the MA50 level manages to continue supporting the price to bounce back and the price manages to make a rise past the 1815.00 zone, a higher rise will be expected to occur after the gold price bullish movement signal is more pronounced.
For a higher rise, the price is seen to be testing the resistance at 1830.00, between the levels that have been an important focus before and the possibility that higher levels can be reached by gold depending on the current situation in the market.
