The price of gold managed to extend its rise to a higher level in yesterday's trading session in New York following the weakening of the US dollar.
This can be observed on the XAU/USD chart which measures the value of gold against the US dollar where the latest increase in price has reached a height of 1938.00.
But before the surge, the price initially experienced a decline below the 1920.00 zone, making investors nervous.
After the United States (US) consumer confidence and JOLTS employment data came out with disappointing figures, the US dollar significantly weakened and pushed gold prices higher.
Thus, the price is seen to remain moving in a bullish trend that is above the support level of the Moving Average 50 (MA50) in the 1-hour time frame on the XAU/USD chart.
Investors will be watching more important data in the New York session shortly, namely, ADP jobs and also economic growth (GDP) in the US.
If the data reading declines, the same movement pattern will be shown by gold.
The price increase if continued will lead to the concentration level of 1950.00 after the level of 1930.00 has been breached.
This would mark a 4-week high for gold after suffering a sharp decline since mid-July trading.
If the rally fails to hold, the price could likely fall back towards the 1920.00 zone that was breached this week.
A lower drop would expect the price to approach the RBS (resistance become support) zone again at 1900.00.
