Gold trading brought smiles to investors' faces today (Tuesday) when the price returned to showing an upward trend.
On Monday, gold price movements were seen to be flat at $2,900 until the New York market session closed, following the United States (US) holiday in conjunction with President's Day.
Thus, movements in the US dollar currency were also slow in the market as investors remained cautious about current market sentiment.
Examining the movements on the XAU/USD chart which measures the value of gold against the US dollar, the price, which was flat at 2900.00 yesterday, was seen to be showing an increase in the Asian session this morning.
The price reached around 2915.00 which also crossed the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the chart, giving an early signal for the price to continue its upward trend.
If the increase continues successfully, the price will head back to the 2940.00 resistance zone tested in trading at the end of last week.
The zone has become a resistance with the highest price reached at the beginning of last week being around 2942.00.
If this level is successfully overcome, a new record for gold prices will be created again.
However, it will be a warning to investors if the price drops back below the 2900.00 level which could trigger a bearish signal.
The price drop will test the RBS (resistance become support) zone which is around 2880.00.
Furthermore, with a clearer signal, the gold price could fall to around 2800.00 again.
