Gold trading still showed mixed movements at the opening of the early week yesterday.
The price of gold, which showed an increase in the European session, lost again in the New York session until the price reached the level of $1,950.
This can be observed on the XAU/USD chart which measures the value of gold against the US dollar which initially reached a rise to the level of 1967.00 before falling to 1950.00.
This mixed movement was driven by the volatility of the US dollar which has been volatile since last week as the results of the FOMC meeting are expected this week.
The Federal Reserve (Fed) is expected to keep interest rates unchanged at 5.25%, but there is still a possibility for the central bank to raise interest rates.
Therefore, the publication of the inflation data of the United States (US) will be given first attention in the New York session later tonight.
The price of gold which fell to the concentration level of 1950.00 yesterday has shown a rebound and is now hovering around the level of 1963.00 as of the European session.
The price is trying to break away from hovering near the Moving Average 50 (MA50) level on the 1-hour time frame on the XAU/USD chart to give an indication of the direction of further gold price movement.
For the expectation of an increase if it happens, overcoming the height reached yesterday will push the price to continue the climb towards the 1980.00 zone.
Successfully breaking through the resistance zone will further target the price to touch the concentration level again at 2000.00.
However, if the price reverses again today, the level of 1950.00 as support during the price will be tested again.
If it breaks through lower, the price will go to the support zone around 1935.00 which previously still prevented the price from falling lower since the end of May.
