After being flat for a while, finally gold has managed to jump higher to get out of the sideways zone since last week.
Influenced by the US dollar, the value of gold rose high as the US dollar was traded depreciating significantly in the New York session influenced by the statement of Federal Reserve (Fed) Chairman Jerome Powell.
Signaling the central bank's monetary policy, Powell has said it is time for the Fed to slow interest rate hikes.
The dovish speech has prompted a sharp decline in the US dollar even though the currency king initially showed a strengthening at the start of the New York session when the United States (US) economic growth data was published.
On the XAU/USD price chart which measures the value of gold against the US dollar has seen the price finally surge past the 1760.00 resistance zone that previously held back the price.
The price rebound from the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the XAU/USD chart gives a bullish signal for further gold movement.
Continuing the trade until today's (Thursday) European session, the price has returned to test the 1780.00 resistance zone that was the focus in mid-November.
The increase in the price of gold is expected to continue in the following sessions to pass higher than the 1780.00 zone.
The next target is at the 1800.00 focus zone for the price of gold to record its latest 4-month high.
However, any possibility can happen at the end of the week that can change the direction of gold price movement.
The price drop if it happens is seen to return to the RBS zone (resistance become support) 1760.00 after the zone was successfully penetrated yesterday.
A drop below the zone will again indicate a change in the bearish trend for gold and a further drop in prices will be expected.
