The gold price movement was quite aggressive at the start of trading earlier this week with a bullish pattern displayed since the Asian session began.
On the XAU / USD price chart which measures the value of gold against the US dollar, the price opened above the level of 1862.00 showing a decline at the beginning of the Asian session but after falling to the level of 1850.00 which is the price support level, a bullish pattern begins to show.
The European session showed a more volatile price fluctuation when the price soared to the high of 1870.00 before declining more than 100 pips making investors restless.
The gold jump is also seen to accompany the silver price spike which reached the latest price high since April last year.
However, the turmoil did not stop there after the gold price was seen to still maintain the rising momentum.
The high level reached last Friday around 1875.00 is the closest target level and investors will assess whether the price can overcome that height.
If the price continues to soar, the main focus level of the price is re-directed at 1900.00 after the price fell from that level in August last year.
However, if the bullish pattern fails to be maintained, the bearish trend is seen to be supported at the 1850.00 level again.
Beyond that level as well as the support level of Moving Average 50 (MA50) in the 1 hour time frame of price movement will signal to investors for the beginning of the bearish trend for gold.
A lower downturn will make the support level of 1800.00 a major destination for investors.
