After being flat for a while, the price of gold is starting to show some movement that is quite encouraging for investors.
Yesterday's New York session was dazzled by the rays of gold with a resurgence in prices due to the depreciation of the US dollar.
This was driven by the dismal data of the United States (US) economic sector, followed by the release of the minutes of the FOMC meeting which surprised the market.
Examining the details of the minutes, the majority of Federal Reserve (Fed) policymakers seem to agree to the option of slowing down interest rate hikes that were previously implemented aggressively.
With the impact of the declining US dollar, the price of gold is seen to rise again.
Examining the movement on the XAU/USD price chart which measures the value of gold against the US dollar, the price initially depressed low to a level around 1726.00 before bouncing up to a level of 1753.00.
The rise above the Moving Average 50 (MA50) barrier on the 1-hour time frame on the XAU/USD chart has become an early indication of a bullish trend change for the yellow metal asset.
The SBR (support become resistance) zone of 1760.00 is now the focus when trading since the Asian session continues into the European session today (Thursday) sees the price level around that area.
If the price increase succeeds in breaking through the 1760.00 zone, the next resistance is at 1785.00 which is the zone that the price tested last week.
The zone also marked the highest level reached by gold for a period of 13 weeks.
Meanwhile, for the expected price drop, if the increase fails to pass the resistance of 1760.00, the price can drop back towards the 1720.00 zone.
A move back below the MA50 level would be a bearish signal again and would dampen investors' hopes of seeing gold continue to shine.
If the decline breaks through the 1720.00 zone, the price could possibly reach around 1700.00 to record a recent 2-week low.
