On the XAU/USD price chart which measures the value of gold against the USD, the price finally managed to destroy the most ‘immune’ wall at 1830.00 and continued to climb to the top.
The surge also began to react when the publication of US inflation data in the New York session yesterday (Wednesday) to fly reached its latest high around 1868.00.
However, the price movement was seen to decline slightly at the end of the session to test the RBS zone (resistance become support) 1850.00 before rising again in the European session today (Thursday).
Concerns over high US inflation are seen as the answer to why gold prices are able to soar and the most superior attraction for investors against the greenback dollar.
In the meantime, the Evergrande crisis that is haunting again at the moment is heating up has made market sentiment risky and gave an advantage to gold trading as a safe-haven.
The surge has also completely ignored the US 10 -year treasury yield as well as the dollar index which also seems to have reached its latest high in 1 year.
Investors will probably look to the next resistance zone at 1880.00 to be reached assuming the gold price movement has the potential to maintain more bullish momentum.
Meanwhile, the possibility of a more violent surge will see the price heading to the resistance zone of 1900.00 which is also the highest level ever recorded in early June.
But if the price of gold gives back an impact to show a bearish trend, the RBS 1850.00 zone is expected to be the initial focus of investors before it will continue to decline to the most intact zone around 1830.00.
The movement of the price above the zone will show the price giving a shadow for the price to change the bearish trend.
