Gold trading only showed a flat movement throughout Tuesday yesterday with limited price reaction as the United States (US) inflation report had a significant impact on the currency market.
Investors digested the current market situation with expectations for central bank monetary policy as well as focus issues that affect sentiment such as Donald Trump's tariffs.
Price movement on the XAU/USD chart, which measures the value of gold against the US dollar, was still seen calm with no drastic movements.
After a decline in gold prices at the opening of the week, the price leveled off around the 3340.00 level on Tuesday yesterday.
Surviving further declines, the gold price showed a slow increase today (Wednesday) in the European session, surpassing the Moving Average 50 (MA50) barrier on the 1-hour time frame on the chart for a bullish signal for gold.
Higher increases if continued will lead back to the 3400.00 level which was the price barrier at the end of last week.
If the next increase succeeds in surpassing that level, the price will return to targeting the 3500.00 level, which is the highest gold record so far.
On the other hand, if the gold price retreats lower this week, it is likely that the price will re-approach the zone reached during the decline at the end of July around 3270.00.
Continuing the decline to a new low, the focus is on the 3200.00 zone for the next price test.
