The XAU/USD price movement which measures the value of gold against the USD saw a rebound to continue the bullish pattern displayed at the end of last Thursday's trading session.
The point of departure is also that the jump has resulted in an increase of more than 250 pips to return to reach the SBR zone (support become resistance) 1780.00 which was the previous support.
But the gold price movement seems to be moving flat and slow during the New York session as well as the European session today (Monday) and remains traded above the Moving Average 50 (MA50) barrier level.
The fall in U.S. 10 -year treasury yields that hit a 10 -week low was among the reasons supporting gold’s surge amid weak readings on the U.S. NFP data report.
However, such a disappointed and mixed report of US NFP data did not at all change expectations for the Federal Reserve (Fed) to implement tapering earlier.
This proves that investors continue to be optimistic for the Fed to do an interest rate hike which at the same time has little to do with keeping the price of gold from continuing to rise.
That is, the next SBR zone at 1800.00 will definitely remain as a focus zone to be tested if the price returns to make an increase which the zone is the closest resistance at this point.
A clearer signal will show the gold price movement is able to climb to the SBR 1830.00 zone and indirectly investors will see the bullish trend change happen again.
But on the other hand the 1760.00 support zone will remain the focus if the gold price continues the bearish trend which is completely lower decline is likely to hit the 1740.00 zone.
