Gold commodity price movements are still seen as flat at the opening of trading earlier this week with volatile market sentiment adding to investors' vigilance.
Affecting the movement of the correlation with gold, the US dollar weakened in the early opening session on Monday yesterday as investors assessed the recovery in market sentiment following the start of the corporate earnings reporting season.
However, investors remain cautious due to factors such as the re-warming of the Russia-Ukraine war and the development of Covid-19 in China may increase the risk in the market again.
If you look at the price movement on the XAU/USD chart which measures the value of gold against the US dollar, the price is seen showing an upward pattern in the Asian and European sessions yesterday until it reached a height of 1668.00.
However, at the close of trading in the New York session, the price of gold began to decline again to the level of 1647.00 and again gave a bearish signal when the price moved below the barrier level of the Moving Average 50 (MA50) in the 1-hour time frame on the chart.
Continuing trading on Tuesday, the price showed an increase in the Asian session from the level of 1650.00 to the level of around 1660.00, but the pattern failed to continue at the beginning of the European session when the price decreased again.
Investors remain vigilant watching for gold's continued flat movement this week while any change in market sentiment will determine price direction.
For the expected increase in the price of gold, the resistance level at 1680.00 will be the focus of future price testing after the zone became a barrier to the increase last week.
The next move higher will lead to the 1700.00 zone before resistance at 1720.00 will be challenged again.
On the other hand, if the price decline pattern displayed this week, the 1640.00 level in the RBS zone (resistance becomes support) will be the initial support that will be tested by the price.
A further decline that continues past the zone is expected to reach the 1615.00 support zone.
