The movement of gold prices towards the end of the week is giving more relief to investors as it continues to show an increase to reduce the losses at the beginning of the week.
Gold prices traded higher driven by the continued weakening of the US dollar as the market remained cautiously awaiting the results of the FOMC meeting next week.
Market sentiment is more influenced by positive developments in China with the news of the transition phase after the government announced the zero Covid policy will end.
Therefore, the US dollar as a safe-haven currency is also traded weakly. However, the issue of the Russia-Ukraine war and the global crude oil market could spark concerns again.
On the XAU/USD price chart which measures the value of gold against the US dollar, the price is seen to continue the upward trend on Thursday yesterday although at a slower pace than the previous day.
After briefly leveling off around 1782.00, prices continued to rise to a high of 1794.00 before closing the New York session slightly lower.
The price continued to increase in the Asian session this morning (Friday) to the level of 1797.00 before declining again in the trade that continued at the beginning of the European session.
The movement of the gold price is seen to remain in a bullish trend with the price being above the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the XAU/USD chart.
The increase is expected to continue for investors to see the 1800.00 zone which is now a resistance, about to be broken.
If the US dollar continues to significantly weaken in the last session of the week, the price of gold has the opportunity to continue its climb above the level reached at the beginning of last week.
The next target is to head towards around 1830.00 to record the latest 6 month high.
However, if the price fails to rise above the 1800.00 level and instead falls lower below the MA50 support level, it will be an early signal of a bearish trend change for gold.
And the price could drop lower towards the concentration zone at 1760.00 again.
