The movement of gold prices on Tuesday's trading yesterday was seen to be slow but still showed a continuous upward trend from the beginning of the week.
Slow movement is expected by analysts, but the situation will change rapidly in the New York session tonight with the publication of inflation data (CPI) of the United States (US) which will be an important indicator for the Federal Reserve (Fed) to set monetary policy.
The further decline of the US dollar will lead to a surge in the price of gold will occur after gold managed to break the all-time high price record last week.
On the XAU/USD chart which measures the value of gold against the US dollar, investors have seen recent record highs reached around the 2080.00 high, before the price plunged back to the 2000.00 level.
Continuing on the trading earlier this week, the price is hovering at the 2030.00 zone which was previously also a focus zone for the price.
A price movement that crosses the Moving Average 50 (MA50) barrier on the 1-hour time frame on the XAU/USD chart can be an early indication of a bullish move, but investors will determine further direction after the CPI data is published.
If the surge is successfully exhibited, the 2050.00 level is seen to be the initial target to reach before a higher move is attempted to continue.
It is not impossible that the effect of the CPI data could push the price of gold to break the recent record high again.
However, be alert if the price plunges down indicating a bearish price movement to start again.
The 2000.00 level became the focus to be tested after last week successfully bounced the price up again.
A lower break above this key level would suggest a more severe fall for gold and investors could be prepared to see the price drop to around 1950.00.
