Starting the new year trading with the right step, the rise in gold prices earlier in the week has managed to reach a high of around $ 1,940 after the price opened above the $ 1,900 concentration level at the beginning of the Asian session yesterday.
However, from the end of the New York session to the Asian and European sessions today, prices are seen flat around the highs reached yesterday as investors monitor market sentiment.
The XAU / USD price chart which measures the price of gold against the US dollar still shows a bullish trend pattern although the price movement started to slow today against yesterday's surge.
Investors are again wary of the political uncertainty ahead of the Georgia election which will see candidates from either the Democratic or Republican parties who will be representatives in the Senate.
Prospective President Joe Biden must expect the two seats contested to be won by Democratic representatives to further strengthen support in the Senate.
Concerns over the issue as well as an increase in the Covid-19 case again limited the continued depreciation of the US dollar.
You can also see the price on the XAU / USD chart flat after the price spike on display. However, prices could resume rising if the US dollar returns weak in the market.
Analysts predict a gold price hike that has successfully surpassed the 1900.00 level has the potential to head back to the 2000.00 high.
The price level of 1900.00 becomes the price support level if a decrease occurs for the price to test the RBS zone (resistance become support) before the investor evaluates the further movement signal of the gold price.
