Gold commodities began to shine at the start of trading in the European session today (Wednesday) following the announcement made by Russian President Vladimir Putin again adding to the anxiety in the market.
The atmosphere in the market has indeed been quiet since the beginning of the week as investors are cautious ahead of the results of the central bank meeting on Thursday.
While investors reduce the risk for trading the US dollar ahead of the FOMC meeting, gold as a safe-haven asset is seen as more of an investor's choice as the market environment changes and becomes more risky.
This has boosted the price of gold which has been moving flat throughout the Asian session this morning.
On the XAU/USD price chart which measures the value of gold against the US dollar, it can be seen that the gold price was flat at around 1662.00 and then jumped to a high of around 1675.00 as of 3pm local time.
This surge has changed the bearish pattern that was displayed throughout Tuesday's trading yesterday when the price of gold is seen to have not yet managed to break through the resistance at 1680.00.
The jump also gives an early indication for a change in the bullish trend that will begin after crossing the Moving Average 50 (MA50) barrier on the 1-hour time frame on the XAU/USD chart.
If the price of gold manages to maintain the surge momentum into the next session, it is likely that the resistance at 1680.00 will be successfully overcome before the continued increase will then lead to the 1700.00 zone.
After the zone is also successfully crossed, a higher rise is seen to return to the concentration level at 1720.00.
On the other hand, if the price of gold remains 'sluggish' to rise, be alert for further declines that may occur.
If the price declines to pass the support zone around 1655.00, the latest low level for gold will be recorded again this week with the initial target to reach around 1640.00.
