Again carve a smile for gold investors today after the value of the precious yellow metal jumped earlier in the market after closing November trading at its lowest level since July.
In the XAU / USD price chart, which measures the price of gold against US dollars, the initial price increase took effect after the price broke its lowest level at the beginning of the week at 1764.00.
In trading on Tuesday last night, the increase in the price of gold has removed the SBR zone (support become resistance) 1800.00 with the increase resumed today.
Since the start of the week, prices have risen by around 600 pips since the European session on Wednesday.
The factor of the price increase is seen as being driven by the depreciation of the US dollar in the market following reports of police officials in the United States (US) which increased the value of the stimulus package compared to previous reserves.
Meanwhile, the development of vaccines is still being monitored with the UK being the first Western country to pass the Covid-19 vaccine and will be distributed as early as next week.
With the rising momentum of gold prices presented, it is likely to head towards the latest highs this week in the SBR 1850.00 zone.
However, if the gold price falls again, the support level 1764.00 will be re-tested if the price decline penetrates the important zone of 1800.00.
A worse fall in the price of gold is expected to come to a price level of 1700.00 for investors to assess the price reaction to the zone.
