After patiently waiting, investors finally saw the price of gold soar higher above the $ 1,800 price level in the Asian session this morning.
On the XAU/USD price chart which measures the value of gold against the US dollar is increasingly clearly showing a change in the bullish trend after the initial rise last week.
With the movement of the US dollar still weak as well as recovering market sentiment has supported the higher rise in gold prices this week.
But investors remained wary of developments for the US dollar after the momentum of last Friday's surge was seen failing to be sustained earlier in the week.
The price of gold has managed to climb back above the level of 1800.00 after the price moved below that level for 2 weeks.
This situation is increasingly giving confidence to investors to expect the movement of gold price on the bullish trend again.
The price increase is seen to test the nearest resistance at the 1820.00 zone before continuing higher towards the SBR (support become resistance) 1850.00 zone.
However, a re-fall of the price below the 1800.00 level will make investors wary for early signals of a bearish trend.
The decline is seen to be supported at the previous support zone around the 1765.00 level while the continued decline will lead to the focus level at 1745.00.
The minutes of the FOMC meeting in the early hours of Thursday morning will be scrutinized by investors for more clear monetary policy indicators by the central bank.
Any reaction to the US dollar will also affect the change in the current value of gold in the market.
