Gold prices recorded an increase at the market opening earlier this week in the Asian session to start trading for May.
Last Friday, the price movement on the XAU/USD chart which measures the value of gold against the US dollar was seen flat after the price plunged the previous day.
The price is flat above the support level of 1765.00 in the RBS zone (resistance become support) which makes it difficult for the price to break it.
In fact, the price made a rebound from the RBS zone this morning and has passed the Moving Average 50 (MA50) barrier level on the 1 hour time frame of the price movement for the initial signal of the bullish trend.
Even so, investors still need to be vigilant in the wake of the strengthening US dollar situation exhibited over the weekend.
If the US dollar manages to maintain its strength this week, gold prices are likely to decline again.
Until the resumption of the European session, the price is still positive to continue the rise and will test the resistance zone at around 1785.00.
Next, gold investors will be happy again with the expectation that the price will continue towards the previous target of 1800.00.
On the other hand, if the price makes a decline again, the RBS 1765.00 zone will be tested again. A lower decline below the zone will push the price to fall back to previous focus levels such as at 1745.00 and 1720.00 levels.
Worse if the price of gold continues to decline, the price will head to the support zone 1700.00-1765.00 which supports the resumption of gold prices in March trading.
