The 500 pips price spike on the XAU / USD chart indicates a significant increase in the value of gold in the market. The situation was shocking but at the same time alarming gold investors.
The rise in the value of the yellow metal was driven by the depreciation of the US dollar in the market after the currency strengthened at the start of the election. Investors are likely to take advantage of previous positions while awaiting an official decision on who will win the White House.
On the XAU / USD chart, the price has shown a rise to reach the high of 1952.00 at the end of the New York session before declining slightly in today's Asian session.
The price decline in the Asian session was seen testing the 1938.00 level which was the previous price resistance zone and began to show a rise again in the European session.
The price is expected to rise above the resistance zone of 1952.00 as expectations for the US dollar remain weak ahead of the US NFP employment data report in the New York session shortly.
The NFP employment data report for October is expected to provide a mixed reading between job growth data and the unemployment rate.
A higher price increase is seen to be heading to the highs around 1970.00 which was the price resistance level in last September's trade.
However, if the price drops below the 1938.00 level again, the RBS zone (resistance become support) in 1910.00 will be the next price focus.
A drop below the Moving Average 50 (MA50) support level for a 1-hour time frame movement on the XAU / USD chart will signal an early bearish trend.
