The gold commodity asset posted a positive performance in Thursday's trade yesterday with prices rising to new highs this week.
Although the attraction of safe-haven assets is fading, the price of gold still managed to show an increase.
Analysts assess that this situation is driven by the depreciation of the US dollar, which opens up more room for gold to rise following the reaction to the release of the United States (US) economic growth data in the New York session yesterday.
The final reading of the US gross domestic product (GDP) data for the last quarter of 2022 then recorded a slight decrease compared to expectations to remain.
Thus, the decline in the US dollar pushed the price of gold to continue to rise, but investors remained cautious with the uncertainty of the market at the end of the week.
The XAU/USD price chart, which measures the value of gold against the US dollar, saw a price increase again starting from the level of 1955.00 in the Asian session, until it reached a height of 1984.00 in the New York session.
The movement of the price above 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 gold giving positive hope to investors.
Flat prices continued trading in the Asian and European sessions today (Friday), and price movements are expected to be more vigorous in the next session.
If the price increase continues, gold is seen to reach the 2000.00 level again.
The level became resistance tested several times in the past week where the price was seen to still fail to reach the latest high again.
However, if the price of gold suddenly plunges again at the end of this week, the 1950.00 level is expected to invite an interesting reaction before investors assess further price movements.
If it is clear that the price has changed direction, the price drop can be expected to reach around 1900.00 which is one of the previous concentration levels.
