Evaluating to the XAU/USD price chart which measures the value of gold against the USD continues to translate an increase to test the 1800.00 wall and collect this week’s spike in excess of 500 pips.
Yet during the New York session yesterday and heading towards the end of the session, the gold price movement seemed to move horizontally before continuing to plummet in today’s (Friday) trading session.
The dive is also seen testing the Moving Average 50 (MA50) resistance level on the 1 -hour frame as well as the RBS (resistance become resistance) zone of 1780.00 which was successfully broken in Wednesday's trade.
The declining 10 -year U.S. treasury yield as well as rising producer price index (PPI) data are among the factors that have driven gold prices to continue to fly higher.
In addition, the surge in higher US inflation and the seemingly shaky USD were also factors that have catalyzed investors back to gold trading.
Meanwhile, US retail sales data for September, which will be published in the New York session, will be an aspect for investors to evaluate to see the gold price movement continue to be lively.
If the gold price manages to continue its encouraging action, the resistance zone of 1800.00 which has curbed the price surge in Thursday's trading session is seen to once again be the level to be tested.
A higher rise will see the gold price move towards the strongest resistance zone around 1830.00 and hit the latest 4 -week high.
On the other hand, if the gold price continues to decline breaking the resistance level of 1780.00, the price is likely to head back to the lower RBS (resistance become support) zone at the level of 1760.00.
