Gold trading began to show a bullish pattern in the European session today after the US dollar resumed a slowdown in the market.
The XAU / USD price chart which measures the value of gold against the US dollar has previously shown a significant decline since last week following the strengthening of the US dollar.
But with the latest report on the future US President Joe Biden who will submit proposals for a bigger economic stimulus on Thursday will once again push the recovery of market sentiment.
Investors are beginning to react to these factors in anticipation of an economic recovery by the package to be implemented has had the effect of depreciating the US dollar as a safe-haven currency.
The price at the beginning of the Asian session yesterday fell to the support level around 1817.00 before the price jumped again the resistance level of 1850.00.
However, the rise is seen to continue on Tuesday above the level of 1850.00 and pass the resistance level of Moving Average 50 (MA50) within the 1 hour time frame of the price movement on the XAU / USD chart which is an early signal for a bullish trend again.
The continued price increase is seen to lead to the resistance level of 1875.00 before heading to the important level of 1900.00.
On the other hand, if the price declines again, the support level reached yesterday will be tested again to record the latest low.
