Apart from the Pound currency, gold trading also did not least surprise investors on the market earlier in the week.
The XAU / USD price chart yesterday saw the price start to show an early decline in the European session after moving slowly in the Asian session.
However, the decline of around 200 pips was only temporary when the price of gold soared again in the next session until 470 pips increase was recorded reaching the high level of 1868.00.
The jump has also managed to break the important level of 1850.00 in the SBR zone (support become resistance) which is expected to be the previous price resistance.
For now, investors are still paying attention to the development of viruses and vaccines as well as the United States (US) economic stimulus package which will also affect market sentiment.
In addition to Brexit, the risk of a US-China trade war in the latest report is also seen to affect the safe-haven gold trade in the market.
The bullish momentum displayed by the price is seen to test the resistance level at 1875.00 before the main resistance zone at the level of 1900.00 will be the focus.
However, if the price returns below the 1850.00 zone and the Moving Average 50 (MA50) support level within the 1 hour time frame of the price movement, the price bearish trend will begin.
Further decline will return to the focus zone of 1800.00 or even lower on the support zone of 1765.00.
