Adding more relief to gold investors when the value of the yellow metal began to show an increase in trading on Wednesday yesterday.
This shows a slightly positive development due to the price movement being more horizontal last Tuesday after witnessing a significant plunge at the beginning of the week.
The situation of the increase in gold prices was driven by the decline of the US dollar in the market yesterday as the development in China is recovering when the government announced that the zero-Covid policy will be ended.
However, there was a bit of risk in the New York session when Russian President Vladimir Putin issued a warning regarding the threat of nuclear war that might break out.
If examined on the XAU/USD price chart which measures the value of gold against the US dollar, the price which was flat at around 1770.00 in the Asian session yesterday then made an increase until it reached the level of 1790.00 at the end of the New York session.
The rise on the chart is also seen to have crossed the Moving Average 50 (MA50) barrier on the 1-hour time frame and triggered an early sign of a change in the price trend for gold.
However, continuing to trade today (Thursday), the price moved slowly and flatly below the 1790.00 level from the Asian session continuing to the beginning of the European session.
However, the price increase is expected by analysts for the price to head back to the 1800.00 concentration zone.
The zone is likely to be a resistance for the price that needs to be tested before the price reaction is evaluated for further movement.
If prices continue to rise above the 1800.00 zone and overcome the highs reached earlier in the week, gold prices are expected to head towards the latest target at 1830.00 to record a 6-month high.
On the other hand, gold's luster is likely to fade if prices start to show signs of falling again.
The drop in gold prices is still targeted to test the RBS (resistance become support) zone at 1760.00.
Passing the zone, the price will drop lower for the expectation towards around 1733.00 which became the price support level in the previous weeks.
