Gold prices once again showed a rise in trading earlier this week after a decline in the previous week.
Investors are beginning to see a change in the trend of gold prices are about to begin and are ready for a buyback position.
The main factor influencing the movement of gold at the moment is the change in the value of the US dollar in the market. The strengthening of the major currencies began to slow ahead of the US NFP employment data report over the weekend.
In addition to the presidential election debate, investor focus is also on discussions on the implementation of the US fiscal stimulus package which will continue to put pressure on the economy if it continues.
Internal issues that add to the pressure on US dollar trading will provide more room for rising gold prices due to the market environment which is still seen as risky with the re-emergence of the Covid-19 pandemic.
Technically, the movement of the gold price on the XAU / USD chart has shown an increase from the support level of 1850.00 after testing since last week.
A price increase above the Moving Average 50 (MA50) barrier level on the 1-hour price movement also gives an early signal of a bullish trend change.
Next, the price has moved above the level of 1875.00 which is seen as the RBS zone (resistance become support) with the expectation that the price increase will continue.
A higher rise is expected to return to the focus level of 1900.00 after the price fell lower than last week.
However, if the price returns to the downtrend, the support level of 1850.00 will be broken and the downtrend will be seen towards the level of 1800.00.
