On the XAU/USD price chart which measures the value of gold against the USD, the price of gold appears to be still moving slowly during Monday’s trading session and remains traded below the 1868.00 level.
However, the price movement is also seen to have produced the latest high in a period of 22 weeks around 1870.00 and seems to be forming an ‘ascending triangle’ pattern for bullish signals.
The resistance level of the Moving Average 50 (MA50) on the 1 -hour time frame is also likely to be used as an early indicator to show the direction of the next gold trading movement.
Growing fears about rising inflation in the past continue to make investors attractive to gold, which is considered a safe-haven at a time when market sentiment is at risk.
The Federal Reserve's (Fed) reluctance to implement an earlier interest rate hike was also a factor in realizing the price on the XAU/USD chart to continue its record surge.
The surge in gold prices also did not take lightly on the greenback dollar even though the king of the currency continued to boast after being driven by the 10 -year increase in US treasury yields.
Entering the end of the European session and ahead of the opening of the New York session later, the price seems to have recorded a fierce surge to try to test the nearest resistance zone at 1880.00.
An increase beyond the resistance zone will likely strengthen investors' expectations for gold prices to continue to fly higher towards the next resistance zone around 1900.00-1910.00.
On the other hand, if the price of gold has received a response from the strengthening of the greenback dollar, the RBS zone (resistance become support) 1850.00 is expected to be tested and will overcome the trendline support.
The ability for the price to remain indicating a trend change may be assessed if the price continues to plummet to reach the next RBS zone at 1830.00 for an early signal of the downtrend pattern.
