The movement of gold price on the XAU/USD chart which measures the value of gold against the US dollar slowed at the opening of trading earlier this week after showing a significant spike over the weekend.
Last week, the price that plunged up to the support level of 1680.00 has rebounded again and passed the barrier of 1720.00 on Friday with the weekly high reached around 1730.00.
The price increase was driven by the depreciation of the US dollar in the market following the decline in US 10-year bond yields.
Continuing trading on Monday, the price eased towards the level of 1720.00 but returned slightly in the European session. Price movement remained slow in the range of around 80 pips with more aggressive price expectations in the New York session.
If the price manages to continue rising, the next focus level is at the resistance of 1745.00 which was tested on the last 2 weeks trade.
Next, the SBR (support become resistance) zone of 1765.00 will be tested before the price returns to the focus level of 1800.00.
However, be wary of a bearish situation again if the price moves lower below the 1720.00 level.
The Moving Average 50 (MA50) support level on the 1 -hour time frame will support the price increase. A lower price drop below this level will signal for the beginning of a bearish trend.
The price will retest the focus levels on the previous decline such as at the level of 1700.00 and also the level of 1680.00 in the support zone.
