Gold survived expectations of a decline when the price of the commodity managed to jump back up in the New York session yesterday.
This follows the decline in the US dollar after the Federal Reserve (Fed) kept interest rates at the latest FOMC meeting this week.
However, analysts expect that for the period ahead, the US dollar currency will return to strong trading following the signal to continue raising interest rates by the central bank.
On the XAU/USD chart, which measures the value of gold against the US dollar, the price is seen to have first fallen to a recent 13-week low before a significant surge at the start of the New York session.
The price has fallen to 1925.00 before surging past the 1950.00 level and reaching 1960.00 towards the end of the session.
Continuing trading today (Friday), the rising pattern continued again in the European session but at a slower pace.
The situation may be more interesting in the New York session shortly to end trading for the week.
If the move higher continues, the 1970.00 level could be reached and the price will test that level which has been a resistance this week.
Passing that resistance will encourage the increase to continue towards 1980.00 before the next target for gold moves to the 2000.00 level.
However if the price of gold plunges back below the 1950.00 level, be prepared for a further drop that will continue the previous plunge.
A decline that successfully overcomes the lowest level reached yesterday's price will target the concentration level at 1900.00.
