Trading in the Asian session followed by the European session on Wednesday yesterday saw the rise in the value of gold continue in the market after the recovery assessed for this week's trading.
However, the dismal performance exhibited by gold in the New York session yesterday did not continue the surge in the previous sessions.
The pressure factor on the US dollar currency, which is expected to continue to decline, will give room for gold to continue to record an increase in value.
The XAU/USD price chart which measures the value of gold against the US dollar sees movement above the support level of the Moving Average 50 (MA50) on the 1-hour time frame still showing a signal to continue the bullish trend.
The continued price movement today (Thursday) is slowly hovering above the 1660.00 level, which is an important zone for prices while investors await signals for further movement.
For the expected rise that will continue, it will test the resistance at the level of 1680.00 to continue to record the latest high level.
Successfully breaking through the resistance at 1680.00 will then expect a rise towards the 1700.00 concentration zone.
On the other hand, if the price starts to show signs of retracement, breaking below the MA50 support level will make investors watch for another fall in gold.
The decline in price is seen to be heading towards the nearest support level at 1640.00 which has successfully bounced the price on Tuesday's decline.
If it crosses that level, the price is likely to drop towards the focus support zone at 1615.00 as reached at the end of last week.
