Although the market movement was flat this week at the end of the 2022 trading period, little surprise was exhibited by the gold commodity when the price surge occurred last Tuesday.
Gold's surge, which hit a fresh 6-month high, was fueled by news of easing restrictions on entry into China after the government eased restrictions on movement, which restored market sentiment.
This situation has caused the US dollar to lose its 'fangs' and open the opportunity for gold trading to soar higher.
However, the positive movement of the yellow metal did not last long as investors saw the price decline again towards the end of this week's trading.
A clearer picture can be observed on the XAU/USD chart which measures the value of gold against the US dollar with the jump last Tuesday having reached the latest high around 1833.00.
However, after the 1830.00 resistance zone was tested, the price shrank again until the price leveled off again at the 1800.00 zone, which was a support for the price on Wednesday yesterday.
Slow price movement above the zone continued trading today (Thursday), with the Moving Average 50 (MA50) level on the 1-hour time frame being tested by investors for indications of further gold price movement.
If the price manages to find a pace to rise again, the resistance at the 1830.00 zone will continue to be tested to be broken.
A further move above the zone will mark a new high for gold with the next target heading towards 1850.00.
However, on the other hand, if the price starts to display a plunge pattern penetrating the 1800.00 zone, the price drop is seen to go up to around 1760.00 after the concentration level of the previous weeks such as 1780.00 was successfully passed.
Next, the 1720.00 zone will be the target for continued further decline.
Even so, analysts expect the price movement to level off around 1800.00 until the close of trading in 2022.
