Gold investors breathed a sigh of relief as trading last weekend saw gold survive a more severe devaluation after the U.S. NFP jobs report came into focus.
Expectations to see a positive report faltered as job growth in the U.S. in December was lower than expected increases.
The factors driving the depreciation of the US dollar gave room for gold prices to rebound again this week.
On the XAU/USD price chart which measures the value of gold against the US dollar saw the price initially make an initial decline around 1783.00 following the reaction to the issuance of the NFP report.
The price then rose until it almost again touched the important level of 1800.00 before flattening slowly below it towards the end of the session.
The price is having difficulty breaking the Moving Average 50 (MA50) barrier level in the 1 -hour time frame until trading resumes at the opening of the Asian session this morning.
The European session saw the price slightly pass the MA50 barrier which is likely to be an early signal for a resumption of gold’s bullish pattern.
If the price manages to break the resistance of 1800.00, the resistance zones of the previous focus around 1815.00 as well as the resistance zone of 1830.00 will give an interesting reaction to the price increase.
Meanwhile, the expected decline in prices if continued will pass the support zone at 1785.00 after a few weeks the zone managed to prevent a lower fall.
The continued decline will lead to the support zone at 1760.00 to record the latest 4 -week low.
