Breaking away from the $ 1,800 level, gold prices continued to rise higher at the market opening earlier this week.
Gold rose while investors were wary of a slightly gloomy movement of the U.S. dollar despite a U.S. jobs report published last Friday featuring high job growth in January.
The next focus will be on the release of the US inflation report on Thursday which is expected to also affect the change in the value of gold in the market.
On the XAU/USD price chart which measures the value of gold against the US dollar, the price has displayed a rise to the level of around 1823.00 at the end of the New York session.
However, the level became a resistance for the price when the price fell again in the Asian session this morning to around 1815.00.
Even so, investors are still optimistic about the current movement of gold as the price is still above the support level of the Moving Average 50 (MA50) on the 1 -hour time frame on the XAU/USD chart.
It is possible that the continued price increase will test the 1830.00 level in the SBR (support become resistance) zone.
If the positive momentum of gold continues, the price may re -reach the resistance zone that was the focus of the price in last January trading around 1850.00.
On the other hand, if the price of gold falls below the price zone level of 1810.00 and also passes the support level of MA50, it will likely be an early indication for investors for a decline in the price of gold.
A decline below the important level of 1800.00 will add an indication for further price declines for the price to also head to the support zone around 1780.00.
