Commodity market analysts were positive for the bullish pattern of gold prices earlier this week after preliminary indications were obtained on last week’s trading.
Last week, investors saw a surge in the value of gold in the market following market risk-off sentiment although the US dollar still maintained a strengthening momentum ahead of the US NFP jobs report over the weekend.
On the XAU/USD price chart which measures the value of gold against the US dollar, the price hovering at the lows around 1750.00 started to rise again above the Moving Average 50 (MA50) barrier on the 1 -hour time frame for an early signal of a trend change.
The uptrend continued until the end of the week but at a slower pace with weekly highs reaching around 1795.00.
Following the depreciation of the US dollar after the NFP report, investors are likely to see a higher rise in gold prices this week.
However, the bulls need to pass the 1800.00 resistance before giving a clearer bullish trend signal.
As long as it still fails to break the 1800.00 level, the price of gold is still seen moving back in the price consolidation zone displayed in the past few weeks.
After the 1800.00 level is successfully passed, the next upside target will go to the SBR zone (support become resistance) at 1850.00 after overcoming the resistance at 1820.00.
On the other hand, if the 1800.00 level remains the resistance zone for the rise in the price of gold, investors will have to watch the price decline again towards the support zone of 1765.00.
A drop below the MA50 support level will also return to signal for the price of gold to continue the previous bearish trend.
