Vibrant trading of gold commodities, especially in the New York session yesterday, which has cheered up gold investors with the increase in prices.
Influencing the movement of gold, the US dollar traded early up to the opening of the New York session and then strengthened back towards the end of the session.
United States (US) consumer confidence data that was published bleakly affected the depreciation of the US dollar initially.
However, after the US dollar strengthened again and put pressure on other major currencies, gold was seen to be able to absorb the pressure after showing a surge.
On the XAU/USD chart which measures the value of gold against the US dollar, the price was initially seen to have surged from the current support level around 1805.00.
The price surge has reached back to the 1830.00 concentration level and again serves as resistance for the price.
Prices slowed slightly below that level at the close of the New York session, but showed a significant decline.
In fact, the price of gold continued to rise again today (Wednesday) and has passed the resistance of 1830.00 continuing into the European session.
After a bullish move above the Moving Average 50 (MA50) support level on the 1-hour time frame on the XAU/USD chart, prices are likely to climb higher today.
The rise is seen to continue towards the target at the 1870.00 concentration zone if the bullish movement is maintained.
However, if the price dips back below 1830.00, a further decline is seen to stop around 1820.00 before reaching the 1805.00 support level again.
