The momentum of the jump in gold prices earlier this week began slowly when the US dollar was also seen strengthening in the New York session last night.
Prior to this, the US dollar's depreciation factor had clearly given room for the gold price to surge higher than the $ 1,800 face that failed to penetrate after several weeks of testing.
In the XAU / USD price chart, which measures the value of gold against the US dollar, it can be seen that the price has also risen sharply when the United States (US) NFP employment report was published last Friday.
Market analysts are now predicting the price of gold to reach an altitude of 1850.00 which has become a hurdle in trading last February.
Trading continued on Tuesday, prices are seen as flat and testing the support level of the Moving Average 50 (MA50) on the frame of the 1 hour period.
If the price still moves above this level of support, the price is expected to reconnect with the previous price increase.
Over the face of 1850.00, a higher increase is expected to also reach the level of around 1875.00 for the highest record price of 4 months.
However, if the original price shrinks, the price is seen to loosen up in the 1820.00 zone first before the lower decline will revert back to the 1800.00 RBS (resistance become support) zone.
The price reaction in the 1800.00 zone will determine the direction of the next gold price movement, whether it will continue the original increase or fall lower.
