As expected, the value of the gold commodity still managed to continue its rise at the end of the week's trading to close the end of September slightly positive after experiencing a decline at the beginning of the week.
After the price of gold recorded a fall to $1,615 last Wednesday, there was a rebound in the value of the yellow metal, giving an early sign of a change in price direction heading into October trading.
If you look at the XAU/USD price chart that measures the value of gold against the US dollar, the price that reached 1615.00 for the lowest record in 2 years bounced back up to 1662.00 last Wednesday.
And on Thursday yesterday, there was a temporary decrease in the price in the Asian session to a level around 1642.00 before the price of gold made an increase again until it continued trading today (Friday).
As of this afternoon's European session, the price has managed to rise to a high of around 1674.00.
The factor driving this increase in gold is seen in the depreciation displayed by the US dollar which again increases the attraction to gold assets.
Analysts saw profit taking activity on the trading of the US dollar which had previously shown significant strengthening following the move to increase interest rates by the Federal Reserve (Fed) at the FOMC meeting last week.
With the expected rise to continue, the resistance zone at 1680.00 remains a focus target to test.
Passing the barrier can further push the price up to around 1700.00 if the US dollar remains with a disappointing performance.
However, if the pattern of price increases fails to be maintained, investors will prepare for a further fall in gold in the market.
The decline is seen to test the RBS (resistance become support) zone at 1640.00 before a further decline that continues will try to overcome the lowest level reached last Wednesday.
Breaking the following barriers will then record another recent 2-year low for gold with a target to head towards around 1600.00.
