The price of gold jumped higher on Wednesday trading yesterday driven by the effect of the movement of the US dollar currency after the United States (US) inflation data was published.
Again raising expectations for interest rate cuts by the Federal Reserve (Fed), US inflation recorded a decline to 3.4% in line with market forecasts.
The US dollar moved weakly after the data was published and lifted the price of gold until the end of the session.
If you look at the XAU/USD chart which measures the value of gold against the US dollar, a higher increase occurred in yesterday's New York session surpassing last week's level.
The 2390.00 zone has been reached and prices are seen hovering around that during the Asian session and early European session trading today (Thursday).
Price movement above the Moving Average 50 (MA50) support line on the 1-hour time frame on the XAU/USD chart will remain bullish for investors.
Thus, the higher increase will continue to be expected to continue which is getting closer to the level of 2430.00 as the highest zone of the gold price recorded before.
However, be aware of the risk of the price falling again due to the current situation of the US dollar's decline, which could change again.
If that happens, the price of gold is likely to show a decline again below 2380.00 or pass the MA50 support.
A drop lower will retarget previous focus levels around 2330.00 and further at 2300.00.
