Gold gave investors a ray of hope again after displaying a surge in New York session trading yesterday.
Risky market sentiment following concerns over global inflation is seen as a factor in increasing the attractiveness of gold assets again.
But the US dollar, which has also strengthened as a safe-haven currency, limits the surge in gold, which is expected to rise more aggressively.
On the XAU/USD price chart which measures the value of gold against the US dollar has seen the price decline previously reaching the level of 1830.00 as expected by analysts.
After testing the RBS zone (resistance become support), the price managed to bounce back to reach a high of around 1850.00 again in the New York session.
Signaling for a bullish trend change, the bulls have passed the Moving Average 50 (MA50) barrier level on the 1 -hour time frame on the XAU/USD chart.
Trading continued today (Thursday), the rise in gold prices still continued in the European session despite the initially slow price movement in the Asian session.
The 1850.00 zone which is an important resistance is tested by the price and it is likely that investors will see a higher rise in the price.
The target for a higher rise is towards the 1870.00 high zone which was the resistance for the price in last week's trading.
On the other hand, if the gold price declines again towards the end of the week, the price will retest the RBS 1830.00 zone.
Successfully passing the zone will give a bearish indication for the price to continue the decline lower.
The price focus zone on the extended decline is around 1810.00 before further focus on the 1800.00 zone.
