The strengthening of the US dollar after being supported by a surge in the latest US producer inflation reading yesterday also had an impact on gold trading.
The producer price index (PPI) reading for July recorded 0.9%, the largest increase in 3 years, signaling that the impact of global tariffs will be passed on to consumers.
If we examine the XAU/USD chart that measures the value of gold against the US dollar, the attempt to increase the price on Wednesday failed to continue before the price was pressured to fall again.
The price of gold fell slightly to touch the important level of 3330.00 again, which is an important determinant for investors.
The price, which is also moving below the Moving Average 50 (MA50) resistance line on the 1-hour time frame on the chart, suggests a lower movement is about to occur.
If gold loses its appeal, the price could fall further towards the 3300.00 focus level, which is expected to invite an interesting reaction.
Next, the price will test the support zone that was reached at the end of July around 3270.00.
However, if the price manages to jump strongly in the final sessions of this week, the target is to regain the height at the opening level at the beginning of the week around 3400.00.
Next, successfully continuing the climb higher, the price will record new heights by targeting the record ATH 3500.00 again.
