The pattern of price movement for gold trading towards the end of the week began to rage with the focus on the United States (US) NFP employment data report which could influence the sentiment of policy tightening by the Federal Reserve (Fed).
Previously, gold started trading early this week following the US dollar factor which experienced a depreciation since last week at the close of trading in September.
This can be observed on the movement on the XAU/USD chart which measures the value of gold against the US dollar with the increase exhibited last Tuesday having reached the latest 3-week high at 1729.00.
However, the yellow metal's positive movement pattern began to change on Wednesday yesterday as there was a re-decline in the price when it failed to continue rising higher.
With the strengthening displayed by the US dollar in the European session and the beginning of the New York session yesterday, has seen the price drop to the 1700.00 zone.
However, it still signaled to move in a bullish trend when the price was supported by the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the XAU/USD chart, before showing a rebound at the end of the New York session.
Continuing trading in the Asian session this morning (Thursday), the price of gold began to hover above the concentration level of 1720.00 again, but still in a slow movement.
Will gold be able to continue its increase ahead of the NFP data report that will be published tomorrow?
If the price of gold succeeds in rising, overcoming the highs of last Tuesday will push the price to first reach the concentration zone at 1740.00.
Next, the price will continue to climb further to test the resistance zone at the height of 1760.00.
However, be careful if the impact of the NFP report could make gold prices plummet again.
The price is likely to plunge lower past the 1700.00 zone to give an indication of a price trend change.
The decline that will continue is seen to give an interesting reaction to the RBS zone (resistance become support) at 1680.00 which has been a trading focus zone in recent weeks.
