Investors will remain cautious for trading these few days with the market atmosphere shrouded in anxiety ahead of the results of the meeting of several major central banks and the most focused is the Federal Reserve (Fed).
The price movement for the gold commodity is also seen to be volatile with the decline showing again after the rising pattern shown last week.
The situation is driven by the movement of the US dollar which has not yet shown a clear direction in addition to the inflation data of the United States (US) in the New York session which will soon be the focus.
The FOMC meeting early Thursday morning is expected to raise interest rates by 50 basis points, indicating a gradual easing of policy by the Fed.
On the XAU/USD price chart which measures the value of gold against the US dollar has seen a bullish pattern displayed until the end of last week before a drop was displayed at the beginning of this week.
The price on Friday tested the 1800.00 zone before closing the week-end session below the 1800.00 zone again.
Resuming trading on Monday yesterday, the price has dropped lower to a level around 1780.00.
It also signals a change in trend for gold when the price starts to move below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the XAU/USD chart.
The slow movement of gold prices continues today (Tuesday) and is still hovering below the MA50 level until the beginning of the European session.
Lower declines would be expected for gold prices to drop back to the 1760.00 zone.
It is likely that the price will fall below the zone after the price surge at the end of last November has managed to break through it.
Meanwhile, for the expectation of a price increase, the price will test the 1800.00 zone and will also signal a change in the bullish trend again.
If it succeeds in rising high, the price of gold will record the latest 6-month high with the expectation of reaching the target of around 1830.00.
