Gold traded flat for a brief 'rest' yesterday after displaying a bullish pattern for two consecutive days.
Investors are still cautious until the end of this week against the US dollar currency which is trading erratically, affecting the volatility of the gold value in the market.
On the XAU/USD chart which measures the value of gold against the US dollar, the price is seen to be flat above the 1830.00 level on Thursday yesterday.
However, on the movement in the 1-hour time frame, the price is still moving above the support level of the Moving Average 50 (MA50) which gives confidence to investors that gold trading still has the potential to continue the upward trend.
The continued increase in prices continued trading today (Friday) testing the high level reached last Wednesday around 1845.00 in the European session.
With the displayed pattern, the increase is likely to continue the price in the next session to reach the target of 1870.00.
The height is expected to be reached next week if the rising pattern is still successfully maintained.
However, if the situation changes, investors will evaluate the signs for the gold price to fall again.
Dropping below the MA50 support level will again test the important level of 1830.00 which is currently still a support for gold prices.
A further decline if continued will head towards around 1820.00 before retracing the lowest support level at 1805.00 or near 1800.00.
In the last trading session of the week, investors will focus on the release of the US service sector ISM survey data which will have an impact on the US dollar and also influence the current movement of gold.
