Gold investors cheered again when the value of the yellow metal managed to record an increase at the market opening for early May trading.
Following the depreciation factor of the US dollar earlier in the week has given room for gold prices to take advantage of the opportunity to rebound towards the expected level of $ 1,800.
On the XAU/USD price chart which measures the value of gold against the US dollar, the price opened above the support level of 1765.00 where the RBS (resistance become support) zone was tested at the end of last week.
Prices made gains since the Asian session started yesterday until continuing in the European and New York sessions.
The early rise in the Asian session has given an early signal for a higher upside after passing the Moving Average 50 (MA50) barrier level on the 1 -hour time frame of the price movement on the XAU/USD chart.
The daily rise was recorded around 320 pips again almost touching the resistance level of 1800.00. But the situation in the previous weeks repeated itself when the price of gold began to decline again before touching the level of 1800.00.
After closing slower trading in the New York session, the price resumed trading in the Asian session with a reversal pattern.
As of today's European session, the price has declined around 1785.00 which was also the previous focus zone.
If the price declines lower again below the MA50 support, the RBS 1765.00 zone returns to the price stop zone and investors will assess the price reaction in that zone.
If the price decline continues, the previous focus levels such as 1745.00 and 1720.00 are seen to return to the price focus.
However, if the strong price rises, the resistance zone of 1800.00 will be broken for the price to record the latest 10 -week high.
