Gold commodity trading managed to show a positive performance on Thursday trading yesterday with an increase to the latest level of the week following the re-decreasing of the US dollar while investors are cautiously waiting for the United States (US) NFP employment data report which will be published shortly in the New York session.
The growing risk of a recession in the US is still a concern for Federal Reserve (Fed) policy makers, but some officials are of the view that aggressive rate hikes still need to be continued for the upcoming meeting.
This factor could be the impetus for the re-strengthening of the US dollar in the after market and will also influence the current movement of gold.
In addition, US 10-year bond yields also shrank again, giving room for the yellow metal to strengthen at the end of this week's trading session.
Pay attention to the price movement on the XAU/USD pair chart measuring the value of gold against the US dollar during yesterday's trading, the price of gold is seen to continue to increase until the close of the New York trading session reaching a height of 1795.00.
The price increase from the 1760.00 zone has crossed the resistance zone at 1785.00 and also crossed the Moving Average 50 (MA50) barrier on the 1-hour time frame on the XAU/USD chart as a signal to continue the bullish movement.
Continuing in the Asian trading session this morning until the European session, the price is seen to be moving horizontally below the high level reached yesterday and it is expected that the price will show the direction of further movement after the NFP report shortly.
The rise in gold prices if continued will challenge the 1800.00 level to test that important level to record the latest 4-week high.
If the price succeeds in breaking through the resistance, the latest high level will be recorded again with the next surge targeting the heights of 1815.00 and 1830.00.
If the price fails to continue strengthening, a further decline in price is expected to return to the support zone at 1760.00 before investors assess the signal of a bearish trend change.
A lower drop for the yellow metal is predicted to shrink to the RBS (resistance becomes support) zone of 1740.00 before reaching the 1720.00 level for the permanent drop to continue.
