Gold investors were increasingly happy to see the spike in the price of the yellow metal in Thursday's trading after reaching its latest high.
Examining the price movement on the XAU/USD chart which measures the value of gold against the US dollar since yesterday’s Asian session, the price has exhibited an increase from the 1734.00 level before slowing to the 1745.00 resistance.
The New York session then saw prices soar higher continuing the gains in the previous session.
The situation is seen to be driven by the depreciation of the US dollar following the sharp fall in US treasury yields to a 6 -week low.
The price has soared to the SBR (support become resistance) zone of focus with the high level almost touching 1770.00.
Still, the price moved back slowly at the end of the New York session to close the trade slightly lower again below the 1765.00 level.
Still hovering around that level until continuing into the early opening of the European session, the price is expected to continue rising to head towards the 1800.00 focus level.
Before reaching that level, the resistance zone around 1785.00 will be tested the price first for a series of higher rises.
If the price of gold falls again, the latest price support level is seen at 1745.00 which is the resistance on the previous rise.
The lower decline is seen to stop at the 1720.00 price zone before a more obvious bearish trend will push the price down to the 1700.00 support zone.
