After a gloomy start to the week yesterday, gold shined brighter today reflecting investors' new hopes for the new year.
Compared to yesterday's more flat price movement, gold surprised the Asian session this morning by surging to a new high above the level reached at the end of December.
Although managed to record an increase against several major currencies, the US dollar declined more against safe-haven trading.
Thus, gold as a safe-haven asset is also seen to gain traction and show a jump in value continuing into the European session this afternoon.
The XAU/USD price chart which measures the value of gold against the US dollar has seen the price surge past the resistance zone at 1830.00.
After the price of gold held above the 1800.00 zone last week, there was a signal for bullish movement for the yellow metal when the price on Monday yesterday hovered above the Moving Average 50 (MA50) support level on the 1-hour time frame on the XAU/USD chart.
In yesterday's trade, the price only reached a high at around 1825.00.
After today's bounce, the price has reached a recent high around 1850.00, making it a 7-month record high.
With this bullish pattern displayed, the price of gold has the potential to be driven towards the next target at the height of 1870.00.
However, be careful if the fall in the value of gold occurs again, the price will drop back to the 1830.00 level with an attractive price reaction expected.
If it breaks lower, the price will retarget the important zone at 1800.00 and investors examine the indicators of the price trend change for gold.
