Gold trading came as a surprise to investors this week as the bullish pattern was presented with a sharp drop in prices at the New York session yesterday.
If you look at the XAU / USD price chart which measures the price of gold against the US dollar, the price has initially managed to make a rise to the high of 1959.00. This level is also the highest reached since early September 2020 trading.
The price then showed a reversal of almost 600 pips up to the concentration level of 1900.00. Once reaching the RBS (resistance become support) zone, the price rebounds to close New York session trading around the 1920.00 price zone.
Price movements in the Asian and European sessions on Thursday were seen to be slower with the absence of a clear direction.
The decline in gold prices was seen to be influenced by the strengthening factor of the US dollar driven by the 10-year increase in US treasury yields. In addition, riots at the Capitol after the Georgia election ended with Democrats winning.
If the decline continues, the RBS zone 1900.00 will be tested again for the price to try to break through.
A drop below that level would lead to a lower fall in the price of gold for investors.
However, if the price manages to jump again, the price will have to cross the price zone again 1938.00 before reaching the high level reached on Wednesday.
Next, a higher increase is expected to reach the level of 1975.00 before reaching the main focus zone of the price which is at the level of 2000.00.
