Gold prices continued to rise to new highs at the start of this week's trade after showing a surge at the close of last week's session.
The focus at the end of last week was on the release of the United States (US) NFP employment data report for December which initially showed a relatively strong reading.
However, investors looked more closely at the components of the report which were actually quite mixed before the US services ISM survey data followed with a declining reading.
The situation that has made the US dollar significantly lower in the New York session last Friday has given the advantage back to the yellow metal trading which decreased the previous day.
It can be observed on the XAU/USD chart that measures the value of gold against the US dollar, the previous price dropped to the RBS (resistance become support) zone of 1830.00 before there was a rebound following the reaction to the NFP report.
The gold price has moved past the Moving Average 50 (MA50) barrier on the 1-hour time frame on the XAU/USD chart, indicating that the price is more likely to display a bullish trend movement again.
The price has managed to hit the target at the 1870.00 resistance zone at the close of trading last week.
And continuing trading today (Monday), the price increase continues but at a slower pace to around 1880.00 and is expected to be more vigorous in the New York session shortly.
The continued price increase is expected to lead to the latest target at the height of 1900.00 to record the highest level in 8 months.
Investors need to be alert if the price of gold begins to move back down below the 1870.00 zone.
The price drop if it continues could reach back to the RBS 1830.00 zone which was the focus of last week.
