Gold trading began to show a rebound to the $ 1,800 price level influenced by the change in the value of the US dollar in the market at the end of October.
Market -risk sentiment saw the attraction of gold become an investor’s choice against the US dollar weighed down by a decline in US 10 -year treasury yields.
The focus will be on US economic growth data for the third quarter that will be published in the New York session shortly.
The XAU/USD price chart which measures the value of gold against the US dollar has seen the price drop almost to the 1780.00 level yesterday and rise again to the 1800.00 level continuing until trading into the European session today.
The price increase also passed the Moving Average 50 (MA50) barrier on the 1 -hour time frame which again signals a bullish movement for gold.
Analysts assess the movement of gold to start to flatten after displaying a bullish pattern over the past week.
Despite showing signals for a bearish pattern at the beginning of the week, the rise was re -displayed towards the end of this week’s trading.
If the price manages to move higher than the current 1800.00 level, it is likely that gold has the potential to hit the latest 7 -week high.
Yet if the US dollar manages to strengthen and put pressure back on gold, the price could decline again from the 1800.00 zone and test the 1780.00 support zone.
The lower decline from the zone is seen to also lead to the RBS zone (resistance become resistance) previously around 1760.00.
