Gold trading again showed a strengthening over the weekend after disappointed investors saw prices fall sharply slumped against expectations to continue rising.
After the FOMC meeting which pushed for the depreciation of the US dollar, the price movement on the XAU/USD chart which measures the value of gold against the US dollar has soared past the 1740.00 level to the 1755.00 high.
But prices plummeted again on Thursday following the strengthening of the US dollar supported by rising US bond yields to recent highs.
The price drop of up to 350 pips reached the level of 1720.00 which is the support level for the current gold.
Continuing up to the European session trading on Friday, the price showed a rebound and investors expected for a higher rise after the price passed the Moving Average 50 (MA50) barrier level in the 1 -hour time frame of the price movement.
A higher rise will test the height level reached yesterday before heading to the SBR (support become resistance) zone of 1765.00.
Passing the zone will push the price to the key focus level of 1800.00 which the market expects.
Yet if the price plunges lower for a bearish trend, the price is expected to return to the support level of 1700.00 touched last week.
The lower decline will be to the key support level of 1680.00 for the price to test the important zone again.
