Surviving the disaster, gold successfully traded higher on Tuesday yesterday as the development of the United States (US) debt ceiling agreement is still being monitored by investors.
Worried about falling lower, the price of gold on the other hand rose again yesterday as the US dollar moved weakly in the European session before recovering slightly in the next session.
Investors examine the XAU/USD price chart which measures the value of gold against the US dollar and evaluates indicators for the probability of a trend change that could occur.
The price drop has reached 1932.00 at first before the price changed direction and surged to break through the 1950.00 zone again.
The rise to the height of around 1960.00 has also broken through the Moving Average 50 (MA50) barrier on the 1-hour time frame on the XAU/USD chart for the initial signal of a change in the bullish trend for gold.
Price movements are however more flat in the Asian and European sessions today, but investors are wary of movements in the New York session which could turn aggressive.
If the bullish pattern continues, the price will test resistance at the 1980.00 zone which was also tested last week.
If it succeeds in continuing to rise higher, the price is seen to reach 2000.00 which is one of the price concentration zones before.
However, if the price plunges below 1950.00 again, the MA50 support level will also be breached and become an indication for the price to resume a lower decline.
If yesterday's lows are successfully overcome, the price will drop even lower after this with a target to head towards 1900.00.
