Gold commodity trading continues to put a smile on the face of investors as a positive price movement pattern is exhibited this week after the initial surge that took place at the close of trading last week.
The dismal performance of the US dollar currency which continues to shrink is seen to continue to contribute to the current increase in the value of gold in the market.
Optimistic investors assess the price movement on the XAU/USD chart which measures the value of gold against the US dollar this week which is seen to end the bearish trend of the previous few weeks.
Although the price was quite passive at the opening of the early week last Monday, the surge in the New York session yesterday has given a more positive signal for gold.
After a bounce from yesterday's 1640.00 level, investors have assessed the indication for a bullish trend move for the price after the price started above the Moving Average 50 (MA50) support level on the 1-hour time frame on the XAU/USD chart.
Looking at today's price action, prices initially flattened above the MA50 support level in the Asian session before continuing to surge above the highs of the beginning of the week.
Gold's positive surge continues into the European session expecting the rise to continue to the target level of 1680.00 which is the previous price resistance level.
Passing the resistance will push the price to the 1700.00 concentration zone before the next resistance is seen to be at the 1720.00 zone to be tested.
On the other hand, if the price of gold plunges again and fails to continue the increase, the 1640.00 level is likely to be an early stop for the price.
A further drop below that level will further strengthen the signal for a bearish trend change again before the price is expected to drop to around 1617.00 which was hit at the end of last week.
