The United States (US) inflation data published in the New York session yesterday also gave impetus to gold trading in the market.
This is due to the significant strengthening of the US dollar after the data was published which has pushed the price of gold down again.
Previously, gold prices have maintained a bullish movement pattern after opening higher at the beginning of last week.
This can be seen in the movement on the XAU/USD chart which measures the value of gold against the US dollar.
The continued rise had initially reached the focal level of 1885.00 yesterday, but the pattern changed as US inflation data came into focus in the New York session.
The price of gold plunged to around the 1870.00 zone, which was one of the price focuses before.
An attractive price reaction occurred when a surge was again exhibited following the opening of the Asian session this morning (Friday) and the increase continued towards the 1885.00 level in the European session.
The resistance of 1885.00 will be tested and will try to be broken before the price resumes the previous bullish trend movement.
The target is still directed to the level of 1900.00 for the price to record the height level of the latest week.
However, if the price is pushed back down again, again the 1870.00 zone will be tested and the reaction will be observed for the indication of the next movement of the price.
A dip lower would expect the price to retrace the 1855.00 level as tested last Tuesday.
