Giving joy back to gold investors when the precious yellow metal managed to rebound yesterday after the market saw prices plummet earlier in the week.
On the XAU/USD price chart which measures the value of gold against the US dollar, the price has managed to rebound from the support level of 1680.00 which was hit by the price in the previous decline.
The level also supported the price increase in early March trading before the price made a rise of more than 700 pips until the middle of the month.
Investors who were restless with the expectation of a lower bearish situation in the price of gold seem to have returned to relief after the price rebounded in Wednesday's trading yesterday around 370 pips to the high of 1715.00.
Passing the Moving Average 50 (MA50) barrier level again, investors are again placing hopes for the price to continue the surge for the initial signal of the bullish trend.
The rise in prices continued in Thursday's trading today towards the level of 1720.00 in the European session for the price to test the SBR (support become resistance) zone.
Strengthening expectations for prices to continue to rise as declining US treasury yields caused the value of the US dollar to depreciate as well and gave room for an increase in the current value of gold.
The next price increase is seen to be heading to the resistance level of 1745.00 before heading to the SBR zone of 1765.00.
Passing the SBR zone will push the price back to the 1800.00 focus level.
If the price fails to break the resistance of 1720.00, the price decline will return to the level of 1700.00 which is also seen as a price support zone.
The 1680.00 level remains the main support level of the gold price that is still immune to break since April 2020 trading.
