After investors closely watched the movement of gold prices on Tuesday's trading yesterday, a rise was seen to have taken place at the beginning of yesterday's New York session.
The situation is driven by the re-depreciation of the US dollar which has again reduced the pressure on gold when the price was initially seen to be flat in the Asian session until the European session.
Examining the XAU/USD price chart that measures the value of gold against the US dollar, the price that was flat in the 2020.00 zone has surged closer to the 2050.00 focus zone.
However, as happened at the end of last week, the rise in gold prices yesterday has also not yet broken through the 2050.00 resistance and the price is moving slowly below that zone today (Wednesday).
However, investors have identified a bullish signal after yesterday's rise in price also crossed the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the XAU/USD chart.
Some more economic data from the United States (US) will be observed today and also until the end of the week which will drive the direction of gold movement.
If the price increase finally manages to break through the 2050.00 resistance, investors will expect a higher increase for the price to reach the next concentration level at 2070.00.
However, the risk of gold prices falling again remains and investors should be prepared in advance for any eventuality.
A price drop below the MA50 support and the 2020.00 level will invite negative expectations for the price to drop lower again.
The 2000.00 level will be the target for further price declines and if it breaks through lower, the gold price will redisplay a bearish movement pattern like in the early trading last December.
