Investors breathed a brief sigh of relief in Wednesday's trade yesterday as gold prices started to move more flat than the drastic plunge seen on Tuesday.
Gold prices managed to hold back from falling below the $1,810 level yesterday as investors began to take steps to watch the presentation of monetary policy by Federal Reserve (Fed) Chairman Jerome Powell for the second day last night.
Last Tuesday during the first day of the presentation, gold prices plunged significantly due to the strengthening of the US dollar following the Fed's hawkish signal to return to policy tightening again.
Now the focus will be on the release of the United States (US) NFP employment data report on Friday tomorrow with the labor sector data component continuing to be watched.
Ahead of NFP, the market has evaluated ADP and JOLTS data yesterday, and in today's New York session, US unemployment claims data will also be observed.
On the XAU/USD chart that measures the value of gold against the US dollar, the price that was flat above the 1810.00 level yesterday only increased to the 1824.00 level.
However, investors are not holding out hope for gold prices to rise due to bearish signals for the price which is still moving below the Moving Average 50 (MA50) obstacle level on the 1-hour time frame on the XAU/USD chart after a significant plunge last Tuesday.
It is possible that the price may continue to decline to reach the 1800.00 support zone which will give an interesting reaction.
If it breaks through the 1800.00 zone, investors need to be prepared to see the price of gold drop lower with the next target being at 1760.00.
However, if the price of gold succeeds in making an increase, the initial resistance that will be reached is at 1830.00.
After the price moving back above the MA50 signals a change in trend, the price will return to the high level reached at the beginning of the week around 1858.00.
