The US dollar still failed to give a clear price movement direction towards the end of the week causing gold to successfully continue its bullish pattern for the second day in a row.
However, the rebound in the value of gold has not yet managed to cover the losses recorded after the fall that began at the end of last week.
The decline in U.S. treasury yields that prompted the depreciation of the U.S. dollar has opened the way for gold trading to record a rebound yesterday.
If one examines the price movement on the XAU/USD chart which measures the value of gold against the US dollar, gold price has shown a more positive movement in the European session yesterday with the price increase before a bit gloomy at the end of New York session trading.
Investors evaluated bullish signals after the price moved back above the Moving Average 50 (MA50) support level on the 1 -hour time frame on the XAU/USD chart making gold continue to rise over the weekend.
U.S. bond yields that have made a decline after peaking earlier this week made this yellow metal make a rebound. But investors are still vigilant ahead of the release of the annual US consumer price index (CPI) data on Friday which will drive the movement of the US dollar as well as affect changes in the value of gold in the market.
If the bullish pattern of gold is still maintained, the price is seen to test the resistance zone at 1870.00 again which is an important resistance tested for 2 consecutive weeks before this.
A higher rise beyond the zone will record the latest highest price of gold for a period of 5 weeks with the next target to head to the 1900.00 zone.
On the other hand, if the price of gold makes a decline, the initial signal for a bearish trend of the price is likely to push the price towards the RBS zone (resistance become support) 1830.00.
If the decline continues and the price manages to pass the zone, the gold price will record the latest 3 -week low with the target towards the 1810.00 zone or the focus level at 1800.00.
