Gold commodity enthusiasts are still pleased with the bullish pattern displayed over the past few weeks.
Did you know, since last April the price of gold has risen around $ 200 until today?
Let’s take a look at the price movement on the XAU/USD chart which measures the value of gold against the US dollar.
If examined, the decline in gold prices since early January has annoyed investors which has continued for 3 consecutive months.
However, in March the decline was supported at the level of 1680.00 and still failed to break after being tested 2 times.
Next in early April the price has soared above the level of 1700.00 and the bullish situation of gold continued until May reached the target level of 1900.00 last week.
The main factor driving the situation was the depreciation of the US dollar so that investors turned to gold as an inflation hedging asset.
During April trading, the 1800.00 level became a barrier for the price of gold before the rise beyond that level facilitated the path of gold to the 1900.00 level last week.
Still showing signals for a change in the price trend, the value of gold is targeted to reach the latest level at 1950.00.
The rise is likely to be achieved during the week with the US dollar expected to continue weakening towards the end of the week as investors are wary ahead of the US NFP jobs data report.
However, the situation of the initial strengthening of the US dollar at the end of last week also made investors wary if the US dollar will strengthen again after this.
If a decline occurs, the focus level is at 1875.00 and the support level is at 1850.00.
Next, the RBS zone (resistance become support) at 1800.00 will return to the focus zone to determine the direction of further gold movement.
