After a bearish pattern was displayed at the beginning of the week, gold commodity trading was seen not to continue the bearish movement when there was a rebound on Tuesday yesterday.
However, gold is seen as still tending to experience a decrease in its value in the market due to the expectation that the strengthening of the US dollar will continue this week with several factors supporting the king of the currency.
However, yesterday's rebound in gold prices is likely to be driven by the momentum of the US dollar, which is slightly slowed down by investor caution ahead of some key economic data from the United States (US), especially inflation data.
On the XAU/USD price chart, which measures the value of gold against the US dollar, saw a decline from the beginning of the week until yesterday's Asian session reached the 1660.00 zone before being seen to change direction to rise again in the European session.
The rise in price tested resistance at the 1680.00 level, but failed to continue higher as the price was also seen to be blocked by the Moving Average 50 (MA50) barrier level on the 1-hour time frame of the price chart.
Towards the end of the week, the price made a dive again towards the 1660.00 zone which remains a price support zone until it continues in today's trading (Wednesday).
The price movement in the Asian session from this morning until the European session showed a slow rising pattern, but still struggling to break through the MA50 barrier.
If the price of gold resumes its downward pattern in the next session, breaking through the 1660.00 support zone will push the price down to the expected level of 1640.00.
And the further decline is seen to test the 1615.00 support zone which was previously reached at the end of September.
On the other hand, if the price of gold manages to surge and then break through the 1680.00 resistance tested yesterday, investors will see it as a positive signal for gold to post a higher rally.
The continued price increase will lead to the 1700.00 zone before reaching back to the resistance zone at 1720.00.
