Do not disappoint, but give hope. That was an expression for gold investors when the value of the precious yellow metal began to show signs of rising again.
If you look at the price movement on the XAU / USD chart which measures the value of gold against the US dollar, the price has started to rise again in trading last Friday after testing the support level of 1765.00.
The price increase has also passed the Moving Average 50 (MA50) barrier level within the 1 hour time frame of the price movement which signals a bullish trend.
Continuing on the market opening trade earlier this week, the price has passed the SBR (support become resistance) zone 1785.00 before the price increase is displayed towards the level of 1800.00 in the European session.
The rise in gold prices was seen to be influenced by the depreciation of the US dollar in a market that failed to maintain its strengthening momentum last week.
If market sentiment remains unchanged, the price of gold is likely to rise higher this week above the 1800.00 level again.
The next increase will test the resistance zone at 1820.00 before heading to the higher resistance zone at 1850.00.
However, if the price of gold falls again this week, last week's support level at 1765.00 will be tested again.
The lower decline is expected to reach around 1745.00 which is seen to be the latest support level for the gold price.
