The continued depreciation of the US dollar after the US NFP employment data report for April recorded a disappointing reading, has pushed gold prices further higher.
The increase in employment in April was lower than expected to rise almost to the level of 1 million, while the US unemployment rate rose.
On the XAU/USD price chart which measures the value of gold against the US dollar, the price of gold is seen to remain strong after successfully surpassing the resistance level of 1800.00 at the end of last week.
Last week it was seen that the price soared past 1800.00 started to slow in the 1820.00 zone before the price continued to rise following the US NFP jobs report.
The latest high was reached at 1843.00 before the price movement slowed back until trading resumed in the Asian session for this week’s market opening.
The price is expected to continue to be driven higher to the resistance level of 1850.00 first before the high level of 1875.00 will be the next bullish target.
The rise to the focus levels will also continue to record the highest price of gold since last February.
However, if the US dollar manages to strengthen again this week, the decline is seen to return to the level of 1800.00 which forms the latest RBS (resistance become support) zone.
The lower decline will be to the support level of 1765.00 which supports the price increase at the end of April.
