Examining the price movement on the XAU / USD chart which measures the price of gold against the US dollar, it can be seen that the price is starting to show a post-horizontal rise above the support level of 1800.00.
After the price drop at the beginning of the week up to the level of 1800.00, the price failed to continue lower below that level before starting to show an increase above the Moving Average 50 (MA50) barrier level in the 1 hour timeframe.
Although the movement signals a bullish trend, it is still early to expect the price to soar to higher levels.
The factor seen to be the driving force for the rise in gold prices in the near future is the depreciation for the US dollar in the market.
The price increase is expected to return to test at the level of 1850.00 in the SBR (support become resistance) zone which was previously the focus.
However, do not ignore the expectation that gold prices continue to fall lower.
A drop in the price below the support level of 1800.00 will give a picture for the price to fall to a lower level towards the level around 1760.00.
Investors will look forward to clearer signals by monitoring key issues affecting market sentiment particularly vaccine development and political sentiment in the United States (US).
