On the XAU/USD price chart which measures the value of gold against the USD it seems to have shown a plunge of close to 200 pips during the New York session (Thursday) before returning to record gains.
That is, the increase has completely moved back to the investor focus zone at 1800.00 and above the resistance level of the Moving Average 50 (MA50) for a bullish sign.
Nevertheless, gold prices are seen to have started a slow movement in trading today (Friday) before being a bit buoyant during the European session and ahead of the opening of the New York session later.
Gold trading appears to be affected following the publication of the US ISM services PMI data displaying a positive reading as well as a report on unemployment claims showing a reduction.
But the inflation outlook expressed by major central banks as well as the decline recorded by the greenback dollar has to some extent helped the price of gold to remain stable.
Nevertheless, the release of the United States (US) NFP employment data report that will be published in the New York session tonight will determine the direction of the gold price movement even more clearly.
The next target will remain on the RBS (resistance become support) zone of 1800.00 to be broken before the expectation is able to track the support zone of 1760.00 provided the NFP report is strong.
However, the support zone will be assessed following the zone has helped the price spike before and a lower decline will see the price heading to the support zone of 1760.00.
The probability for the price to start a surge will be seen if the price is able to climb harder to reach the SBR (support become resistance) zone of 1830.00 and surpass the MA50.
Significant shadows to show a change in the bullish trend will be seen if the price is able to move to the next SBR zone at 1850.00 which is also the 11 -month high.
