Looking at the XAU/USD price movement chart which measures the value of gold against the USD, it seems to be back on the rise after moving slowly on Thursday following ‘Thanksgiving Day’.
The price pattern was also seen to have traded sadly at the end of the New York session yesterday before re -displaying a surge in trading that continued at the beginning of the Asian session on Friday morning.
The surge has indirectly tested the SBR (support become resistance) zone of 1800.00 and saw a plunge reaction in today's European session to remain hovering within the zone.
Gold trading appears to be benefiting after U.S. treasury yields came as a surprise with an aggressive fall after nearly reaching the 1.70% level earlier in the week.
Investors are also still wary of hawkish statements in the minutes of the FOMC meeting that could be a clear catalyst for the Federal Reserve (Fed) to raise interest rates earlier.
Not only that, the probability of profit taking activity (profit taking) when trading is heading towards the end of the week and approaching the close of November movement.
Analysts expect that the gold price movement is likely to first test the next SBR zone at 1830.00 before strengthening with the expectation of being able to continue climbing.
A more aggressive ascent will see the price heading towards the SBR 1850.00 zone and that in turn will make a bullish trend change to once again reach the 1880.00 resistance zone.
If gold trading continues to receive pressure from the greenback dollar, the RBS (resistance become support) zone of 1780.00 or can be considered as a support level this week to re -hit.
The ability to decline more severely will see the price movement track to the support zone of 1760.00 which the zone once supported the surge again in early November.
