The weak movement of the US dollar at the start of trading this week has given room for gold prices to show a resurgence.
The XAU / USD price chart which measures the price of gold against the US dollar has shown that the price testing the 1900.00 level at the beginning of the Asian session has surpassed the Moving Average 50 (MA50) barrier within the 1 hour time frame of the bullish signal.
Until trading continues into the European session, the SBR (support become resistance) zone around 1910.00 has been tested with bullish momentum still on display.
A higher rise in gold prices will return to high levels early last week around 19.32 for the price to test the resistance zone.
A higher rise will lead to a higher SBR zone around 1950.00 after the price plunged from that high level in trading 4 weeks ago.
Nevertheless, investors are advised to be wary of the possibility for the US dollar to strengthen again with uncertainty over current market sentiment.
This week, the main focus is the development of the United States (US) economic stimulus package, the latest wave of Coronavirus and Brexit.
Any development that adds risk to the market will encourage investors to make purchases on the safe-haven currency of USD and potentially put pressure on gold trading again.
Prices may plunge back below the 1900.00 level and move to lower support levels around 1875.00.
