Failing to reach the $ 1,800 target level last Tuesday, the price of gold has exhibited a decline of up to almost 300 pips.
But in Wednesday's trading continuing into the Asian session this morning, the price of gold climbed again to head back to the $ 1,800 level.
Gold prices continue to be affected by changes in the value of the US dollar in the market and the depreciation in the value of the US dollar has led to a resurgence of gold prices.
The US dollar moved weaker towards the weekend as investors were cautious ahead of the US NFP jobs data report which will have a big impact in the market.
Thus, it can be seen that the price on the XAU/USD chart which measures the value of gold against the US dollar has risen again since yesterday from the level of 1770.00.
The price has also passed the Moving Average 50 (MA50) barrier level on the 1 hour time frame of the price movement on the XAU/USD chart for a higher bullish signal.
Resuming trading on Thursday, the price continued to rise higher to the level of around 1795.00 as of 4.30 pm local time.
Investors are still waiting to see if the price can jump to the level of 1800.00 after the zone is still immune from price breaches after being tested for several weeks.
Passing the resistance zone will record the latest highest gold price for a period of 10 weeks.
However, if the same situation is repeated, gold investors will be disappointed again when they see the price of gold plummeting again still failing to pass the 1800.00 level.
The RBS (resistance become support) zone of 1765.00 will be the downside target as well as the zone that will re-support the upside as traded in previous weeks.
A lower decline on the bearish trend will make levels such as 1745.00 and 1720.00 the focus of investors again.
