Gold prices showed an increase in trading today (Friday) after a decline in prices was seen since last Wednesday.
Examining the price movement on the XAU/USD chart which measures the value of gold against the US dollar saw the price increase initially take place at the beginning of the week.
Still, the price is blocked at the resistance zone of 1870.00 and investors are evaluating early signals for a change in the bearish trend on Wednesday.
After hovering in the 1850.00 zone until Thursday yesterday, the price of gold started to show an increase on Friday making investors a little relieved.
This is because the price has made a rise past the Moving Average 50 (MA50) barrier on the 1 -hour time frame on the XAU/USD chart, being an early indication for the price to resume the bullish trend.
The rise in prices, albeit at a slow momentum, continued into the European session this afternoon and is likely to continue until the New York session.
However, investors will remain vigilant for the close of trading this week with possible uncertainties such as price changes caused by profit-taking activities in the market.
If the rise is successfully maintained, the resistance at the 1870.00 zone will be tested again by the price after failing to break it at the beginning of the week.
Prices that pass higher levels are seen to be re -targeting the 1900.00 highs, among the price focus levels in previous trades.
On the other hand, if there is a further decline below the 1850.00 zone, the support level for this week around 1843.00 will be passed to record the latest weekly lower level.
The target of the zone to be tested on the continued decline is at 1830.00 before further decline can reach up to the 1810.00 zone or the 1800.00 focus support zone again.
