After gold prices plunged last Thursday, Friday saw a rebound in gold prices after the US NFP jobs report was published in the New York session.
It can be seen that the price movement on the XAU/USD chart which measures the value of gold against the US dollar has hit a low last week around 1856.00 before rebounding 400 pips.
The re -depreciation of the US dollar will again open up opportunities for a higher rise in the value of gold making gold investors return to optimism this week.
Despite the slow price movement in resumed trading earlier this week, the price continued to show gains retesting the focus level at 1900.00.
The price movement above the Moving Average 50 (MA50) support level on the 1 -hour time frame on the XAU/USD chart also gives a positive signal for a bullish trend.
However, in today's trading (Tuesday), the price showed a slight decline since the beginning of the Asian session starting from the 1900.00 level towards the MA50 support level.
Investors are waiting for clearer signals for the direction of further gold price movements.
If the price returns to support at the MA50 level, the bulls are expected to move higher above the 1900.00 level to break the resistance zone.
Only after breaking the zone will investors see a higher price target to reach gold possibly to the level of 1950.00.
On the other hand, if the decline since this morning’s Asian session continues, the initial support level is seen at 1875.00 before the lower decline will return to last week’s low of 1856.00.
A lower drop below the support zone of 1850.00 will push the price of gold to return to the focus level in April trading, namely the RBS (resistance become support) zone of 1800.00.
