Gold trading earlier this week gave a new year surprise to investors as prices have soared since falling plummeting in early September.
After several weeks of testing the $ 1,900 resistance level in the last weeks of 2020 trading, the start of the new year saw prices open above that level.
The XAU / USD price chart which measures the price of gold against the US dollar today sees the price continue to show a significant increase of up to 300 pips as far as the European session.
The resistance zone in 1938.00 will be tested before the price gives an indication to continue the rise or a price decline again.
The significant price spike was due to the continued depreciation of the US dollar in the market following investors' confidence in the economic recovery despite being alert to the pandemic crisis.
Not only gold, but other major currencies also have the advantage of taking advantage of the increase in value at the beginning of the week.
Analysts would expect the momentum of the gold price increase to continue after the important level of 1900.00 was successfully passed after being tested several times before.
It is likely that the level of 2000.00 will be achieved in the near future if the economic recovery increases as well as a decrease in the number of cases of infection worldwide.
