Gold trading jumped to a 4 -week high over the weekend after the U.S. NFP jobs report was published with declining job growth figures prompting the US dollar to depreciate.
The increase in jobs in the U.S. fell to 235,000 compared to expectations to decline to 720,000 for August.
The continued depreciation of the US dollar has opened up greater room for the gold commodity to rise higher in the market.
On the XAU/USD price chart which measures the value of gold against the US dollar has seen the price heading towards the resistance zone of 1830.00 last Friday with the highest level reached around 1834.00.
Gold prices however returned to a slow move below the resistance zone continuing earlier in this week’s trading.
The support levels at 1820.00 and 1810.00 are expected to support the price to resume rising after the price correction takes place at those levels.
As the US dollar is seen to continue to move weakly in the market, gold prices have the potential to reach higher levels beyond the 1830.00 resistance zone this week.
The next rise will lead to the previous analyst focus zone at the height of 1850.00 at the same time recording the latest level of 3 months.
For a decline below the support level of the Moving Average 50 (MA50) on the 1 -hour time frame on the XAU/USD chart will be an early signal for a change in the bearish trend of the price.
The decline will test the support zone at 1800.00 before a lower price fall below that zone will expect the price to decline up to the previous support levels around 1765.00 and 1745.00.
