Investors breathed a sigh of relief when the strengthening of the US dollar did not have much effect on the significant decline in the value of gold.
In fact there are factors that could drive the re -depreciation of the US dollar before this week’s trading ends.
Even so, investors are wary of any possibility such as the occurrence of profit taking activities that pose a risk to price movements.
On the XAU/USD price chart which measures the value of gold against the US dollar, still saw a decline in Thursday's trading.
But the price just tested the 1745.00 focus level before the rebound made a rise again.
The price that is still moving above the support level of Moving Average 50 (MA50) on the 1 hour time frame of the price movement also gives a bullish signal.
However, the price increase displayed in today's trading (Friday) is seen as very slow and it is likely that investors are also wary of volatile market sentiment.
The price increase will test the resistance zone at 1765.00 before giving an indication for a higher rise.
The continued rise will return to the SBR zone (support become resistance) at 1800.00.
Yet if the price of gold plunges back below the level of 1745.00, investors will evaluate as a bearish signal of the price again.
The decline is expected to move towards the support zone 1700.00-1680.00 which is an important zone for the price.
The zone was also tested in March trading, but managed to support the price spike again as well as the situation that occurred earlier this week.
