Gold investors were back to cheer when the precious yellow metal showed a rebound at the close of trading last week.
With the sharp depreciation of the US dollar in the market has pushed the price of gold higher again.
The situation was influenced by market reactions to dovish -toned comments by Federal Reserve (Fed) Chairman Jerome Powell regarding monetary policy indicators at the annual event of the Jackson Hole conference last weekend.
On the XAU/USD price chart which measures the value of gold against the US dollar has seen the price rebound above the 1800.00 level.
Initially, trading heading towards the end of last week showed a price drop below the 1800.00 level bringing anxiety to investors for such bearish movement signals.
Still, Powell’s dovish statement has triggered a rebound and is expected for gold price to rise higher this week after the price re -moved above the Moving Average 50 (MA50) support level on the 1 -hour time frame on the XAU/USD chart as a bullish signal.
Reaching the latest highs around 1823.00, the rise has managed to overcome the previous resistance at the 1810.00 zone.
Now the 1830.00 resistance zone will be the target to be tested for the uptrend that will continue earlier this week.
Next, the gold price is expected to rise higher heading back to the 1850.00 focus zone after the price plunged below this zone in last June’s trading.
As for the bearish situation, the 1800.00 zone is seen as a resumption of price support level which is expected to curb the more severe fall in gold prices.
On the other hand if the price continues to plunge below the zone, the previous focus levels such as at 1765.00 and 1745.00 will be the price attraction zone and should be given attention by investors.
