Positive for gold trading on Thursday yesterday as prices are still rising while investors' focus will be on the US NFP employment data report in the New York session soon which is expected to also affect 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 managed to rise in the New York session yesterday to reach the target level at 1950.00.
However, the level became a resistance for the price after the decline was seen to occur as soon as the price touched the high level.
The decline in gold prices continued in today's trading (Friday) testing the support level of the Moving Average 50 (MA50) on the 1 -hour time frame on the XAU/USD chart that investors scrutinized for indications for further movement.
If the bullish pattern is still able to be maintained, the bullish could happen again and the price will once again test the resistance at 1950.00.
Successfully overcoming the resistance will further push the price to rise higher testing the SBR zone (support become resistance) at 1970.00 before the target for the next rise is at 2000.00.
Be wary if gold prices start to plummet again in the New York session is likely an early reaction of the price to the NFP report.
The decline is seen to re -test the support level at 1900.00 which still managed to curb the bearish action for several weeks.
If the zone is broken, the gold price is expected to hit the latest 5 -week low with the initial focus to be tested being on the 1870.00 zone.
