Market risk-off sentiment has encouraged demand for the gold safe-haven asset to continue to rise at the same time as the US dollar is also strengthening.
The crisis of the collapse of giant banks in the United States (US) has begun to 'contagion' to Europe with the news of the collapse of the giant Swiss investment bank, Credit Suisse.
In the latest development, Credit Suisse reportedly received a $54 billion loan offered by the Swiss National Bank (SNB) to cover liquidity support.
However, the market still wants to see if the current panic situation can be eased again.
Judging the price movement on the XAU/USD chart which measures the value of gold against the US dollar, the price initially dipped slightly below the 1900.00 level leaving investors ready for a further drop.
However, the reaction to the 'hot' Credit Suisse issue yesterday, the price then jumped back past the 1900.00 level before reaching a height of around 1937.00.
The price, which reached its latest 6-week high, retreated again at the close of the New York session and continued to trade slowly today (Thursday) until the European session.
Price crossing above the Moving Average 50 (MA50) support level on the 1-hour time frame on the XAU/USD chart still signals a bullish movement for gold trading.
The increase is expected to continue towards the height of 1950.00 which is also one of the price focus levels in the previous trading.
Next, the price has the potential to reach the 2000.00 level again which will be the target for the continued increase.
On the other hand, if the price starts to move down below the 1900.00 level, it will give investors an early signal for a further fall in gold prices.
A further drop in price will again test the 1870.00 level before continuing the decline towards around 1830.00.
