Gold continued to advance to higher levels after successfully climbing back above the $ 1,800 price level for trading earlier this week.
On the XAU/USD price chart which measures the value of gold against the US dollar, it can be observed that the price dropped below 1800.00 last week giving an early signal for the beginning of a bearish trend.
But earlier this week it could be seen that the price managed to make a rise after the reaction to the NFP jobs report last Friday did not put pressure on gold.
Investors will be vigilant ahead of tonight's New York session awaiting the release of US inflation data which will also affect the current movement of gold in the market.
If examined, the price has managed to continue its rise past the level of 1800.00 yesterday with a daily rise of over 200 pips to the high of 1822.00.
Investors are also increasingly seeing a bullish trend change on the XAU/USD chart after the price movement moved above the Moving Average 50 (MA50) support level on the 1 -hour time frame since the beginning of the week.
Although the price movement has started to flatten since the Asian session this morning, but investors need to be prepared to see the price increase will continue again towards the high of 1830.00.
The level has become a resistance that has been tested several times in the past week but the price has not yet managed to break it.
It is likely that if the situation continues, the price that maintains the bullish pattern will head to the 1850.00 or 1870.00 zone to record the high level made of the gold price.
On the other hand if the price makes a decline again, the 1800.00 level is seen to be the price support level before signaling for a bearish trend again after declining below the MA50 support level.
The lower decline will head to last week’s price support zone at around 1785.00 before a continued decline will retrace the 1760.00 focus zone.
