The movement in the price of gold has given investors more confidence when it shows a pattern of appreciation at the beginning of the week.
As can be seen on the XAU / USD price chart which measures the value of gold against the US dollar, the price has moved past the 1800.00 level last weekend.
The rise continued in trading earlier this week when a significant surge in the New York session yesterday provided relief to investors after flat price movements in previous sessions.
The resistance zone at 1820.00 was also successfully penetrated by the price further strengthening the indicator of the bullish trend of the gold price after the price moved above the Moving Average (MA50) support level during the 1 hour time frame of price movement.
The rise continued on Tuesday trading towards the 1850.00 concentration level. The price increase was seen in the Asian session and continued until the European session.
The price is expected to continue rising higher to pass the 1850.00 resistance and then head back to the 1875.00 resistance zone tested in January.
Even so, investors are wary if there is a reversal of the price on the XAU / USD chart.
The price zone of 1820.00 will be the support zone for the price to continue rising. If the price continues to plummet, the 1800.00 level will be tested and the price is expected to signal a reversal of the trend.
A lower price drop will lead to last week's support level at 1785.00 before the next decline is likely to reach around 1765.00.
