The continued depreciation of the US dollar continued into the European session on Friday, has given room for the gold commodity to continue its increase in value again surpassing the value reached on Thursday yesterday.
The US dollar initially showed a positive reaction that strengthened following the speech by the Chairman of the Federal Reserve (Fed) Jerome Powell in the New York session yesterday, but it weakened again at the end of the session until continuing in today's trading.
On the XAU/USD price chart which measures the value of gold against the US dollar yesterday saw a rise in prices up to a high of 1728.00, but plunged back to 1704.00.
However, the decline in prices did not continue when the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the XAU/USD chart was seen to successfully support the price increase again in the Asian session this morning.
The price increase continued into the European session past the 1720.00 zone and was seen to surpass the high level reached yesterday Thursday.
If the US dollar continues to depreciate until the close of trading in the last session of the week, gold has room to register a further increase in value.
For the target for the increase to continue, the price is seen to test the 1740.00 zone before continuing the climb higher to the target of the 1760.00 resistance zone.
On the other hand, if the price of gold declines again, a break below the 1720.00 zone will then test the MA50 support level for an indication of the direction of further price movement.
The continued decline in price will lead to around 1692.00 for the support zone to be tested before a further decline will record the latest 7-week low.
The next target is to re-reach the support zone of 1680.00 which has successfully boosted the price during trading last July.
