Gold trading resumed climbing again yesterday after experiencing a significant drop in prices last Tuesday.
But analysts warned gold investors not to be too happy too early because the turmoil has yet to subside ahead of the release of the United States (US) NFP jobs data report which is the main challenge shortly.
Influenced by the increase in the value of gold, the US dollar currency was seen moving weakly on Thursday yesterday in reaction to the US unemployment benefit claims data.
On the XAU/USD price chart which measures the value of gold against the US dollar has seen a re-increase in price past the concentration level of 1830.00.
Investors assess the initial signal of a trend change when the price starts to move above the Moving Average 50 (MA50) support level on the 1-hour time frame on the XAU/USD chart.
Slow price movement above 1830.00 continued trading today (Friday) with investors hoping to see gold prices continue to rise further.
The reading of the NFP data will invite an interesting market reaction and will show the direction of the further movement of gold.
If the price increase continues successfully, the high level at the beginning of the week around 1858.00 will be challenged to be overcome before the increase leads to the concentration zone of 1870.00.
The move requires a more significant depreciation to occur on the US dollar.
If the opposite is the case, the price could possibly plunge again below the 1830.00 level before the price heads to the important support level at 1800.00.
Recent lows will be recorded if the US dollar strengthens the impact of the NFP jobs report reaction.
