The joy of gold investors did not last long when the price that surged yesterday plunged again during the movement in the New York session.
This is due to the market's reaction to the published United States (US) inflation data which also affects the change in gold prices in the current market.
After examining the decrease in the inflation rate after reading the figures displayed, the US dollar continued to depreciate and this caused a surge in the value of gold.
It can be observed on the XAU/USD chart that measures the value of gold against the US dollar where the price jumped up to a height of 2048.00.
However, investors have not yet finished cheering, the price of gold plunged again and even surpassed the level of the price surge.
The price dropped to around 2022.00 before bouncing back slightly and slowly ending trade at the end of the New York session.
Weak movement continued trading in the Asian session this morning (Thursday), before the price drop appeared in the European session below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the XAU/USD chart.
If the US dollar continues to strengthen to continue trading into the next session, the price could plunge lower towards the 2000.00 concentration zone.
About to test that important zone, investors will examine the direction of further movement of the gold price based on the price reaction.
However, if the price movement turns more bullish, the increase will be exhibited again for the price towards the 2050.00 zone which was also almost touched during yesterday's surge.
If the breakout is higher, the price will continue to climb and it is possible that the all-time high recorded last week could be broken again.
