A bit of a surprise to the market at the end of last week's trade when gold returned to shine again, making investors smile.
The strengthening pressure of the US dollar at the end of a slightly gloomy week gave room for gold prices to recover.
In addition, the yield of the United States (US) treasury, which shows signs of decreasing, also affects the current gold price movement.
On the XAU/USD chart which measures the value of gold against the US dollar saw the price fall near the 1900.00 level last Thursday before the price rebounded on Friday.
The price advance managed to break above the 1920.00 level and reach the 1930.00 high in the last session, but retreated slightly to close the session's closing trade around 1923.00.
Resuming trading at the beginning of the week, the price showed an increase but was still stuck at the 1930.00 level and retreated again in the European session.
With the expected bullish pattern to continue today, the price needs to break through the 1930.00 zone first before continuing to rise higher.
If it continues, the price will reach the height of 1950.00 again which became an important obstacle for the price of gold last August.
However, if there is another decline in the price like the pattern displayed last week, a drop below the 1920.00 level would expect the price to head back to the 1900.00 level.
After a clear bearish signal is displayed, the price will risk falling below 1900.00 and the support level of 1885.00 will be tested.
