The XAU/USD price chart which measures the value of gold against the US dollar has recorded a jump yesterday to the resistance level at 1745.00.
The rise in gold prices was driven by the weak movement of the US dollar in the market following the decline in US treasury yields which had fallen below the 1.70%level.
Analysts are still optimistic for the price of gold to continue to rise after making a rise since last week from the support level of 1680.00 and recording almost 670 pips of 4 consecutive days.
The price, which also remains above the support level of the Moving Average 50 (MA50), also still signals a bullish trend for gold.
The resistance level at 1745.00 needs to be broken for the price to continue rising towards the SBR zone (support become resistance) 1765.00.
The zone became a price support level in last February trading before prices fell lower in March.
A rise in the price of gold beyond the zone will push the rise higher up to the level of 1800.00.
However, if the price plummets again and moves below the MA50 support level, the decline will re -test the previous 1720.00 price zone.
The next decline will be to the level of 1700.00 and also 1680.00 which is the support zone for the price of gold that was tested since last month.
