Gold prices continued to shine for investors this week after showing gains for 3 consecutive days.
On the XAU/USD price chart which measures the value of gold against the US dollar has seen the price have risen from the support level of 1680.00 at the beginning of the week to the level of 1740.00 as of today’s European session (Thursday).
Investors are increasingly confident that the price of gold will remain soaring after the price movement met the forecast of analysts who expect the price to rebound again from the support zone of 1680.00-1700.00.
On Tuesday, a significant rise in the price was displayed up to the resistance level of 1720.00 before the price resumed its rise in Wednesday's trading yesterday past the resistance.
Price movements were seen to remain driven by the depreciating US dollar factor throughout the week as the market reacted to the fall in US bond yields which put pressure on the US dollar.
The price increase is seen heading towards the focus level of 1745.00 with positive momentum, but investors remain vigilant for the situation of falling gold prices again.
If the price makes a decline again, the 1720.00 level is seen as the price support level before the lower decline so that it passes the Moving Average 50 (MA50) support level on the 1 hour timeframe will give investors further anxiety to expect a bearish trend.
However, if the price manages to maintain the rise, the initial destination of focus is seen at the SBR (support become resistance) zone of 1765.00.
Investors will evaluate the price reaction on the SBR zone and if the price manages to break to higher levels, the main focus will be to the 1800.00 level again.
