The price of gold continues the pattern of price increases again today (Wednesday) after displaying a horizontal movement on Tuesday's trading yesterday.
Turmoil in the Middle East is still being monitored by investors and some important economic data that will be published will also be given attention.
The US dollar, which affects the movement of gold prices, showed a gloomy performance yesterday after the views expressed by members of the Federal Reserve (Fed) were dovish.
Examining the XAU/USD price chart which measures the value of gold against the US dollar, the price has risen past the 1855.00 level last Monday.
But on Tuesday yesterday, the price was seen to move horizontally above 1855.00 which became the support level when making the price.
The trend remains bullish for gold with the price movement still above the Moving Average 50 (MA50) support level on the 1-hour time frame on the chart.
The upswing is seen continuing in continued trading today in the European session towards the 1870.00 focus level.
It is likely that the price will break through it and continue to move higher to the next target around 1885.00.
If it breaks through, then the 1900.00 level will be reached again.
However, the risk of gold prices plunging again remains, so investors need to be alert to any possibility.
A drop below the MA50 line and the 1855.00 level is an important indication to investors that gold prices are at risk of falling again.
A decline will occur for the price to reach back to last week's concentration level at 1830.00 and it is expected that there will be an interesting reaction shown.
