The gold commodity is seen yet to make any surprising movements although the US dollar is still moving weak against other major currencies in the market.
Seeing the decline of the dollar index which hit the level of 107.00 this week added pressure on the US dollar in addition to several releases of US economic data (US) will be monitored before the focus will be on the FOMC meeting next week.
Influencing the movement of the US dollar as well, the US stock market which is seen to maintain the strengthening momentum is an additional factor to the expectation of a continued gloomy movement for the US dollar in the near term.
Investors are likely to be extra vigilant for gold trading while awaiting the outcome of the FOMC meeting, but any possibility could happen in the market over the weekend.
Technically, the price movement on the XAU/USD chart which measures the value of gold against the US dollar is still seen moving horizontally at the level of the Moving Average price barrier (MA50) on the 1 -hour time frame which still does not give a clear indication of further price direction.
There was an increase in the price on Tuesday's trading yesterday, but before touching the resistance level of 1720.00, the price has receded and flattened until the end of the New York session trading.
Continuing the Asian session this morning (Wednesday), the price remained flat at the MA50 level and showed a slight weak decline in trading that continued at the beginning of the European session.
If a lower decline is exhibited, the 1700.00 support zone will still be the focus to be tested and investors will evaluate the price reaction on this important zone for further indicators of gold movement.
If the price declines beyond the support zone, further decline is expected to lead to the latest target around 1680.00 to record the latest 11 -month low.
On the other hand if the price starts to show a rebound, the resistance level of 1720.00 is likely to be broken before continuing to rise higher with the signal of a bullish trend change is about to begin.
The next higher gold price increase is seen to return to some important focus zones such as at 1760.00 or higher to the target level of 1800.00.
