Gold commodity trading already showed a positive price movement at the end of last week when closing the September trading curtain.
The profit taking factor against the US dollar is seen to have pushed the value of gold back up in the market last week after falling to $1,615.
After maintaining a bearish pattern for several weeks, there was a change to a more positive price pattern for gold to resume the October opening trade this week.
If you look at the XAU/USD price chart, which measures the value of gold against the US dollar, you can see that the price that dropped to 1615.00 has jumped again last Wednesday before analysts assessed it as an early signal of a change in the bullish trend.
The price has surged past the Moving Average 50 (MA50) barrier on the 1-hour time frame on the XAU/USD chart and the price movement remains above the MA50 level continuing earlier this week.
As of last Friday, the price of gold has risen to a high of around 1675.00.
The horizontal movement of the price exhibited in the early sessions of this week around 1662.00, the price of gold is expected to continue the increase to the concentration zone at 1680.00.
Analysts expect a pullback in the zone, after trading in previous weeks failed to break through it.
If the price manages to break through the resistance, a higher increase is seen to be driven towards around 1700.00 first before continuing the price climb to the 1720.00 level.
Meanwhile, if gold trading loses again this week, the price will drop back to around the RBS (resistance become support) zone at 1640.00 after the bearish signal that the price has fallen below the MA50 level.
Awaiting continued price declines is the support zone hit last week at 1615.00, which is a 2-year record low for gold, the lowest since April 2020.
