Examining the XAU/USD price chart which measures the value of gold against the USD is seen to record a fierce action by flying back high to the top to retest the resistance zone of 1800.00.
The success of the surge has also completely broken the trendline resistance as well as the resistance level of the Moving Average 50 (MA50) to give an initial impression that the price is able to jump higher.
The price movement only reacted to the publication of the United States (US) ADP NFP data and the ISM survey service data to plunge to test the RBS (resistance become support) zone of 1760.00.
However, the RBS zone has once again supported the price spike as before during the issuance of the results of the FOMC meeting to continue the trading session today (Friday).
It seems that investors are more attracted to trading gold than the USD despite Federal Reserve (Fed) Chairman Jerome Powell announcing a move that meets investor expectations.
Meanwhile, the 10 -year US treasury yield declined again as well as the weak economic growth rate were among the factors in supporting the gold price rebound.
Will the release of the US NFP data strengthen the follow-up of the positive US NFP ADP data or will it continue to record mourning for the 3rd consecutive month?
If the displayed price movement trend is valid to continue climbing, the resistance zone of 1800.00 is expected to be overcome to head to the high of 1813.00 reached at the end of October.
A more aggressive surge will see the price able to record the latest highs that will likely be able to test the resistance zone at 1830.00.
Meanwhile, if the price continues to be pressured by the strengthening USD, it is likely that the price will re -hit the RBS zone (resistance become support) 1780.00 before the price is expected to continue to decline.
