The surge in gold prices in the European session yesterday failed to last much longer as investors had to come to terms with seeing gold fall again at the start of New York session trading.
On the XAU/USD price chart which measures the value of gold against the US dollar yesterday saw the price rise to reach a high of 1818.00 for a record 3 -week high.
But the price plunged back below the 1800.00 level again, wiping the smiles on the faces of gold investors.
Risky market sentiment this week prompted the attraction of market players towards safer assets with commodities as well as safe-haven currencies starting to show improvement over the weekend.
Gold among the focus is expected to rise higher after the previous rise managed to cross the 1800.00 price level.
But prices are still hovering around the zone to continue Friday's trading while investors are still waiting for clearer signals for the direction of further price movements.
If the price increase is successfully resumed, the 1820.00 price zone is still seen as the nearest focus zone that will be tested first before the bullish trend will more clearly push the gold price to the SBR zone (support become resistance) at 1850.00.
On the other hand, if investors get an indication for a lower price fall again, the 1765.00 level will return to focus after the price rise above that level last week.
A lower support zone is seen at 1745.00 if the price decline continues.
