Even with a slow rate, gold still managed to display a pattern of increasing value continued at the beginning of this week.
If you look at the price movement on the XAU/USD chart which measures the value of gold against the US dollar, the price has shown the same pattern for trading in recent days with the ladder pattern exhibited.
An increase in the price of gold was seen in the Asian session, but in the New York session saw a drop in prices again. The situation lasted from last week until yesterday's trading.
As of Monday yesterday, gold prices have risen to a high of 1734.00 with the latest support seen at 1720.00.
This horizontal price movement was driven by investors' caution ahead of the United States (US) inflation data in the New York session tonight, making the US dollar move somewhat gloomy.
However, price movements are expected to pick up again after the release of the data, in addition to several other US economic data that will be in focus such as retail sales data and the US producer price index this week.
If the US dollar continues to experience more significant depreciation, gold is expected to take advantage of the space to jump higher.
Meanwhile, the strengthening of the US dollar will make investors ready for a further fall in gold prices, continuing the downward trend seen in trading at the end of August.
If the price manages to jump higher from the support zone at 1720.00, the resistance at the 1740.00 zone will be the next focus.
While for the continued increase, the resistance zone at 1760.00 will be tested again after 3 weeks of gold prices hovering below the zone.
However, be alert if the price starts to drop below the 1720.00 zone and pass the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the XAU/USD chart which will be evaluated as a signal for a bearish trend change.
The initial price drop will go to the zone around 1700.00 first before the support zone of the previous weeks around 1690.00 will be tested.
Breaking the zone will mark the latest 8-week low for gold with a target for further price declines to around 1680.00.
