Gold trading still managed to remain at a high level as the market expected a possible devaluation ahead of the publication of the minutes of the FOMC meeting.
However, the US dollar showed a gloomy movement and did not give a significant reaction when the minutes were published, thus giving an advantage to gold.
There is no clear indication of the next interest rate hike after the Federal Reserve (Fed) has started to slow rate hikes at the last meeting of 2022 last December.
With the decline throughout Wednesday yesterday by the US dollar was benefited by gold to rise to a new high of the week for a 7-month record high.
If observed on the XAU/USD price chart which measures the value of gold against the US dollar, the price has made a recent increase reaching a height of around 1865.00.
However, the increase did not continue in the New York session with the price just closing the trade at the end of the session around 1855.00.
The price is still moving above the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the XAU/USD chart as a signal that the price is likely to continue the bullish trend.
If the increase continues, the price is seen to head towards the 1870.00 level to test the resistance zone.
If broken, the next target for gold is to reach the high level at 1900.00.
However, if the price drops back below the MA50 level, it will be an early sign of a further fall in gold prices.
The price will drop to the RBS (resistance become support) zone of 1830.00 to provide an indication of further movement.
A lower decline if continued will return to the focus zone at 1800.00.
