Gold continues 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 versus the US dollar, it can be seen that the price fell below 1800.00 last week, signaling the start of a bearish trend.
But earlier this week saw prices manage to make gains after the reaction to last Friday's NFP jobs report did not put pressure on gold.
Investors will be cautious ahead of the New York session tonight awaiting the release of inflation data in the United States (US) which will also affect the current movement of gold in the market.
If examined, the price has managed to continue the increase beyond the previous level of 1800.00 last night with a daily increase of more than 200 pips to the high level of 1822.00.
Traders are also increasingly seeing a change in the bullish trend on the XAU/USD chart after the price movement moved above the support level of the Moving Average 50 (MA50) on a 1-hour timeframe since the beginning of the week.
Although the price movement has started to flatten since the Asian session this morning, investors need to be willing to see the price increase will continue to reach the high level of 1830.00.
This level is a barrier that has been tested several times in the last week but the price has still not managed to break it.
It is possible that if the situation persists, the price which maintains the upward trend in the price will go to the 1850.00 or 1870.00 zone to record the high level of the gold price.
On the other hand, if the price makes an initial decline, the level of 1800.00 is seen to be the level of price support before signaling for the original bearish trend after shrinking below the support level of the MA50.
The drop lower will head towards last week's price support zone at around 1785.00 before a continued decline will re-trace the 1760.00 support zone.
