The bullish pattern of gold was already displayed in early trading this week, but will it be an indication for a higher spike in the value of the yellow metal, or is it just a price correction taking place?
On the XAU/USD price chart which measures the value of gold against the US dollar last week was seen to have shown a decline throughout the week and as of last Friday, the price has reached the level of 1800.00.
The US dollar remained dominating the market last week which also put pressure on gold trading in addition to other major currencies in the market.
Yet at the start of trading earlier this week yesterday, the price hovering in the 1800.00 zone was later seen to have made a rebound over the opening zone of the price around 1810.00.
In the New York session, the price has risen past the Moving Average 50 (MA50) barrier level on the 1 -hour time frame giving an early indication for a bullish trend change.
The price increase continued until continuing today (Tuesday), however until the beginning of the European session the price hovered in the resistance zone of 1830.00.
If it passes that zone, a higher rise in gold is expected to test the next focus zone around 1850.00 before heading back to around 1870.00.
However, be wary if the US dollar regains its strength and puts pressure on gold again.
The decline if it happens again is seen to re -test the support zone around 1800.00.
Continuing the bearish trend like the trading of the previous weeks, the gold price is targeted to hit up to around 1760.00 for the latest record low of the gold price for 2022.
