After recording a decline to its latest 10 -week low, gold prices began to show a rebound and continued until the beginning of the European session this afternoon.
Analysts see profit -taking activity likely to take place this weekend pushing gold prices to start rising again after recording the biggest monthly drop since last September.
On the XAU/USD price chart which measures the value of gold against the US dollar, the price is seen to have declined to the support zone of 1870.00, among the zones that are the focus of analysts.
Yet the zone is seen to have supported the gold price to make a rebound yesterday and there are signals for an early reversal of the bullish trend after the price moved past the Moving Average 50 (MA50) barrier on the 1 -hour time frame.
The rise in the New York session connected to the Asian session this morning is seen to continue again and as of 4.00 pm local time, the price of gold has risen to around the 1917.00 level.
If the price increase continues to be higher, the 1950.00 zone that was the focus before is seen to be tested again.
And the next rise on the bullish trend movement, the price of gold will re -target the high zone at the resistance of 2000.00.
Still, investors remain wary of expectations of a resumption of gold prices next week following expectations of a more aggressive interest rate hike by the Federal Reserve (Fed) that will strengthen the US dollar.
The decline in the price of gold will test the support zone of 1870.00 and the price reaction in that zone will be evaluated by investors for further price movement indicators.
If the price breaks the decline in that zone, the price could reach up to the level of around 1830.00 to record the latest 11 -week low.
