The price spike on the XAU / USD chart on Thursday yesterday saw a daily rise of up to 340 pips indicating the value of gold trading continued to rise until this weekend.
Sentiment remained unchanged with investors optimistic about the development of the US economic stimulus package as well as vaccines making the US dollar remain weak.
The effect of the significant depreciation of the US dollar since the beginning of the week has also allowed gold prices to rise in addition to other major currencies.
The price has reached its highest level this week around 1896.00 almost back to the focus level of 1900.00.
However, the price of gold is seen to be declining again on Friday trading and investors will be more wary of the possibility of profit-taking activities that drive price declines.
The price decline is seen to test the level of 1875.00 in the RBS zone (resistance become support) and investors will examine the price reaction in that zone.
If the price is seen to reflect the rise again from the zone, the price increase is expected to continue towards the focus zone of 1900.00.
However, if the price drops significantly below the RBS zone of 1875.00 and also the support level of Moving Average 50 (MA50) in the 1 hour time frame of price movement, investors will start to see a bearish trend on the XAU / USD chart.
Further decline is seen to return to around 1850.00 which was the support level last Wednesday before the price soared higher.
