Gold trading continued last week’s excellent performance at the market opening earlier this week by re -displaying the bullish pattern for the precious commodity.
This situation is driven by the depreciation factor of the US dollar in the market which also opens up space not only for gold, but also for other major currencies in the market to rise.
On the XAU/USD price chart which measures the value of gold against the US dollar has seen a spike in the price of gold last week from the support level around 1810.00.
The price has jumped almost touching the 1850.00 level and tested the resistance zone over the weekend.
The price movement above the Moving Average 50 (MA50) support level on the 1 -hour time frame on the XAU/USD chart remains a bullish signal for gold trading.
Resuming trading earlier this week, the price continued to rise above the highs reached last week towards the level around 1858.00 connected to the European market session.
The bullish pattern displayed pushes the price expectation to continue the higher climb towards the previous focus zone of 1870.00.
Next, the rise beyond the zone will target the high of 1900.00 after a few weeks of gold price moving below that level.
However, investors did not rule out any possible shocks in the market that are likely to make gold prices decline again.
If a decline occurs, the price support level is seen in the 1830.00 zone which will be tested by the price.
A lower decline for a bearish trend change signal will push the price back to track the 1800.00 focus zone.
