The XAU / USD price chart which measures the value of gold against the US dollar will definitely be the focus of many investors this week with the upward movement pattern displayed by the price.
After soaring above the 1800.00 level last Friday, the price continued to rise this week and until the New York session yesterday, the rise almost reached the 1850.00 high.
The rise in gold prices is seen to be further supported by the depreciation of the US dollar in the market starting with the publication of the US NFP employment report last weekend.
With US dollar-driven price movements, investors will be cautious ahead of tonight's New York session for the release of US inflation data.
After closing a slightly lower trade at the end of the previous New York session, the gold price once again showed a reversal but still hovered below the resistance level of 1850.00 until today's European session.
If the price manages to stay in the bullish trend, the level of 1850.00 will be broken and then the price will return to the resistance zone of 1875.00.
However, in the event of a decline in the price of gold, the price support level is seen in the RBS zone (resistance become support) at 1820.00 before a lower decline is expected towards 1800.00.
Next on the price support reached last week around 1785.00 will be the focus and assess whether the price is able to pass a decline below that level.
Also monitor market sentiment affecting US dollar trading affecting the current value of gold.
