On the XAU/USD price chart which measures the value of gold against the USD, the price of gold seems to continue to maintain an excellent performance in recording an uptrend for 7 consecutive days.
However, the price movement in the New York session during the close of trading last week (Friday), the price is seen to decline slightly to reach back to the RBS zone (resistance become support) 1850.00.
But the RBS zone is still in favor of re -making the jump as it was last Thursday to once again test the level around 1868.00 which is also the 22 -week high.
Gold trading remains an attraction as a safe-haven in line with the publication of inflation rates that hit record highs since 1990 and the Federal Reserve’s (Fed) uncertainty to make tapering.
Preliminary readings of gloomy spending survey data last week and the resumption of U.S. 10 -year bond yields continue to be the reason why gold prices are able to remain soaring.
Meanwhile, the release of US retail sales data that will be published in the New York session tomorrow (Tuesday) is likely to influence the next direction to the movement of gold prices.
The 1868.00 high remains the main focus to be achieved if gold trading is able to continue to rise and expectations are likely that the level will be able to be broken this time around.
A fierce surge will see prices fly higher to test the resistance zone around 1900.00-1910.00 reached in early June and remain intact in continuing the bullish trend.
Assuming gold trading regains pressure from the strengthening greenback dollar, the support trendline is expected to be overcome for the RBS 1850.00 zone test price before continuing to decline.
And being the next lower focus will see the price movement tracking the RBS zone at 1830.00 and will likely give an early signal for a trend change.
