Gold investors breathed a sigh of relief when they saw the price start to rise again yesterday.
Of course, last Wednesday, the price of gold plummeted in the New York session when the US dollar was seen to be strengthening.
However, the situation changed on Thursday yesterday following the United States (US) unemployment claims data which recorded a high weekly increase, making the US dollar significantly weaker again.
This in turn shifts the tendency of market expectations towards a move by the Federal Reserve (Fed) to maintain interest rates rather than to raise them.
Investors will focus on the FOMC meeting next week, in addition to US inflation data (CPI) will also be watched.
On the XAU/USD price chart which measures the value of gold against the US dollar, the price plunged last Wednesday reaching 1940.00.
Being a support level for the price, a rebound was exhibited yesterday with the price reaching the height level before the plunge which is 1970.00.
Then, the price began to slow at the close of the New York session until it continued into the Asian and European sessions today (Friday) around 1964.00.
The price movement is expected to continue rising higher as the price is above the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the XAU/USD chart, indicating a bullish trend for gold.
In addition, the price driven by the momentum of yesterday's surge will be pushed up towards the resistance zone at 1980.00.
Next, a higher increase will touch the previous concentration level which is at 2000.00.
However, anything can happen with trading risks at the end of the week that can change the direction of gold price movement again.
Be prepared for expected bearishness, the MA50 support level will be tested before the price goes to the 1950.00 level.
For further decline if it continues, the previous support level of 1940.00 will be reached again and it is not impossible that the price will record the latest 12-week low with a target towards 1900.00.
