On the XAU/USD price chart which measures the value of gold against the USD it seems to continue to record a surge continuing the momentum at the end of last week until entering the focus resistance zone at 1830.00.
The surge is also seen to have created a 9 -week high last reached in early September and has yet to fail to break since July trading.
Meanwhile, the high is seen as forming an HH (higher high) pattern and still remains traded above the Moving Average 50 (MA50) barrier level for a bullish trend signal.
Decked out as the still-dragged weak greenback dollar following seeing the improving market situation has led to demand for the king of the currency as a safe-haven is declining.
In addition, the decline in US 10 -year treasury yields which remained traded below the 1.50% level also put pressure on the US dollar and was a factor supporting the soaring gold price.
Market frustration over the move by the Federal Reserve (Fed) has also made investors more attracted to gold ahead of the release of US inflation data on Wednesday.
If the USD returns to strengthen following a positive reading on recent NFP data and expectations of a rising US inflation rate could put pressure back on gold trading.
The decline will see an attempt to once again test the level around 1813.00 or the RBS zone (resistance become support) at 1800.00 before continuing to decline to lower levels.
Yet investors are expected to see the reaction of gold price movement on the resistance zone to touch 1830.00 to assess whether the level is able to curb the price spike or vice versa.
Assuming the 1830.00 resistance zone this time around manages to be torn apart, it will inevitably strengthen analysts ’expectations for the gold price to potentially reach the next target likely heading towards 1850.00.
