Gold trading gave a positive signal for investors in the Asian session this morning as it rose from the $ 1,800 price level to the $ 1,810 level continuing into the beginning of the European session.
However, this situation is actually not enough to give confidence for a higher rise because the horizontal movement of gold prices has dragged on for several weeks.
Despite looking a bit struggling to keep up, gold still remains above the $ 1,800 level which is an important price support level.
The XAU/USD price chart which measures the value of gold against the US dollar sees the price of gold hovering above the 1800.00 level for 3 consecutive weeks with the highest level reached as far as 1834.00.
It is likely that investors will see a clearer direction of gold price movement after the results of the FOMC meeting earlier this Thursday which will drive the US dollar and also affect the value of gold in the market.
The initial rise in gold price is expected to test the resistance zone around 1820.00 first before testing the high reached 2 weeks ago at 1834.00.
Only after these levels will a higher rise in the price of gold be recorded with the expectation of heading into the SBR (support become resistance) zone of focus at 1850.00.
If the price of gold shows a decline back below the level of 1800.00, this situation will be a concern for investors as an early signal of the beginning of the fall in the price of gold again.
For lower declines, pay attention to the previous price focus levels around 1765.00 and also 1745.00.
A clear bearish trend will push the gold price down target until it can reach the 1700.00 level again.
