Gold investors are still placing high hopes for the precious commodity to rise higher this week after moving flat over the past week.
Failing to continue the upward momentum of the previous week, gold last week flattened below the $ 1,800 price level as the re -strengthening of the US dollar prevented gold prices to higher levels.
Earlier this week, however, the US dollar was seen moving weaker as analysts saw the move to reduce bond purchases (tapering) by the Federal Reserve (Fed) getting more difficult following the rapid wave of Covid-19 variant Delta that returned to violence.
On the XAU/USD price chart which measures the value of gold against the US dollar, the price showed a rise at the beginning of the Asian session this morning carving a bit of a smile on the faces of gold investors.
However, price momentum slowed as trading continued into the European session.
Early signals of bullish movement are seen after the price moves above the support level of Moving Average 50 (MA50) on the 1 -hour time frame on the XAU/USD chart.
The resistance level of 1800.00 in the SBR zone (support become resistance) will be tested if the rise in gold price continues.
A price increase that manages to break the SBR 1800.00 zone will further strengthen the expectation of gold price to jump to higher levels with the next target at the 1850.00 focus zone.
However, if the price makes a rebound, the 1765.00 level is seen as an initial level to support the rebound.
If the decline continues, the 1745.00 level will be tested before a lower decline will push the price further decline to return to the 1700.00 support zone.
