As expected by investors who remain optimistic, gold trading continued to be driven to higher levels on Wednesday yesterday continuing the previous day's rising pattern.
Supporting the situation, the US dollar was traded weakly following a decline following market sentiment restored by the positive development of the Chinese economy.
China's manufacturing and service sector data for the month of February was published with excellent readings showing the positive effects of the government ending the previous zero Covid measures.
The continued weakening of the US dollar gives gold room to trade higher towards the end of the week.
On the XAU/USD price chart which measures the value of gold against the US dollar has seen an increase in price that successfully passed the resistance of 1830.00.
The rise continued to reach a high of 1844.00 in the New York session yesterday but towards the close of the session, the price retreated slightly to around 1836.00.
Resuming trading today (Thursday), the price moved slowly to the 1830.00 level again and will react to the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the XAU/USD chart for further movement signals.
If the price bounces back to continue the rise, overcoming the highs reached yesterday will encourage the climb to continue towards the target of 1870.00.
The zone is expected to be an important resistance to be tested by the price and investors will watch the reaction in the zone.
However, if gold loses at the end of the week, the price can dive back towards the support level at the beginning of the week after passing the 1820.00 level.
The continued decline is expected to track to the 1800.00 support zone and also record the latest 9-week low.
