Thats it! Gold bounced back in Thursday's trade, so what?
On the XAU/USD price chart which measures the value of gold against the US dollar saw a rebound in gold prices starting in the European session yesterday after moving flat throughout the previous Asian session.
This is due to the re -depreciation factor of the US dollar in the market which caused not only gold, but most other major currencies in the market to rise as well.
The price which was initially flat above the 1810.00 zone then surged up past the focus resistance zone at 1830.00.
The price increase until the New York session has reached the SBR zone (support become resistance) 1850.00.
Gold prices then flattened below the zone and the rise in Friday trading also tested that important resistance.
The bullish pattern of gold over the weekend tried to signal for a trend change after the price moved back above the Moving Average 50 (MA50) support level on the 1 -hour time frame on the XAU/USD chart as a bullish signal.
The price increase if continued is seen to be heading to the next focus zone at around 1870.00 before re -targeting a higher rise to 1900.00.
But beware if prices plummet again to close this week's trade to lower levels.
The price will return to test the 1810.00 zone after the initial decline that first passed the 1830.00 level.
The main support zone of the price is at 1800.00 will be the focus to determine the direction of further movement of the gold price whether it will survive making a rise again or continue to decline lower.
