Gold trading was also no exception, displaying turbulent price movements in the New York session yesterday, which was influenced by the market's reaction to the release of inflation data from the United States (US).
The value of gold, which is influenced by the movement of the US dollar, saw the king of the currency experience sharp price fluctuations as soon as the data was published.
The annual reading of the US consumer price index was in line with forecasts of a decline to 6.5% from 7.1% previously, the 6th consecutive month of decline.
Observing the movement of the XAU/USD chart which measures the value of gold against the US dollar in the New York session yesterday, the price initially plunged towards the level of 1870.00 but there was a rebound to reach the height of 1900.00.
Then the price again showed a decline, but was supported by the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the XAU/USD chart before rising again to end the session's end trading around 1900.00.
The slow price movement in the Asian session this morning (Friday) around 1900.00 is the obstacle for the price.
However, in the European session, the price rose and crossed the 1900.00 resistance to continue to record the latest 8-month high.
With the expectation that the US dollar will continue to weaken, the price of gold has the potential to reach its latest high level up to around 1950.00.
But beware of the volatility at the end of the week which is likely to see gold prices fall again in the final sessions.
Failing to stay above the 1900.00 zone could make the price of gold decline again with the 1870.00 support level likely to be the focus to be tested.
If it is judged that there is a signal of a change in the bearish trend again, the price can drop lower towards the 1830.00 zone again.
