Although the increase in the value of gold was not so significant earlier this week, the yellow metal commodity managed to surpass last week's price level.
As can be seen on the XAU/USD price chart which measures the value of gold against the US dollar, the price displayed a bullish pattern at the beginning of the week on Monday trading yesterday.
The depreciating factor of the US dollar gave room for gold to rise again, although the recovering market sentiment was seen as not giving much advantage to safe-haven assets.
Thus, although the price of gold showed an increase at the beginning of the week, the price movement was seen still moving in a limited range.
However, investors can still breathe a sigh of relief as indicators of bullish price movement are still present on the XAU/USD chart with the price remaining above the Moving Average 50 (MA50) support level on the hourly time frame.
After the price reached its latest high at the beginning of the week around 1864.00, the price declined again hovering in the 1850.00 zone at the end of the New York session continuing until the Asian and European session trading today (Tuesday).
If the price returns to display a rise, overcoming yesterday’s highs will push the price to test the focus zone at the 1870.00 resistance.
Passing the next zone will expect the rise to continue to the resistance zone at the height of 1900.00.
Investors however remain vigilant in case the price of gold returns to make a rebound to signal a bearish trend movement.
The decline is seen to return to the level of 1830.00 to test this important level.
And further lower declines will return to the main support zone at 1800.00.
