The price of gold commodities also fluctuated in the New York session yesterday, experiencing a drop and surge after the reaction to the release of inflation data from the United States (US).
As investors scrutinize, the initial strengthening by the US dollar when the consumer price index (CPI) data was published beat expectations, pushing gold prices to plummet.
However, gold prices were seen rebounding towards the end of the New York session as investors assessed expectations for the Federal Reserve (Fed) likely to slow down its previously aggressive policy tightening as US annual inflation readings continued to show a decline albeit at a slow pace.
On the XAU/USD price chart which measures the value of gold against the US dollar, the price initially tested the resistance level at 1680.00 before plunging to around the 1640.00 zone.
But the price plunge did not continue when the price started to bounce back to around 1670.00 and slowed down around that until the close of trading in the New York session.
Continuing trading on Friday, the price was seen hovering testing the Moving Average 50 (MA50) barrier on the 1-hour time frame on the chart and retreated slightly in the European session.
Is this a sign that the price of gold will resume bearish movement again? Investors remain cautious for week-end trades.
If the price decline occurs again, the RBS (resistance becomes support) zone of 1640.00 will return to focus to be tested once again.
And if it passes that important zone, the continued bearish movement of the price will expect a lower drop to the 1615.00 support zone.
However, if the price increase pattern is displayed, resistance at 1680.00 will be tested after several times the price failed to break through since the beginning of the week.
Passing that resistance will push the price towards the 1700.00 concentration zone before gold surges higher to reach the previous 1720.00 height zone.
