A happy situation for gold investors when they saw a positive increase in the price of the yellow metal on Thursday trading yesterday.
Although the US dollar has regained strength in the market after moving weakly from the beginning of the week, gold prices managed to absorb the pressure to move to a 2-week high.
Risky market sentiment at the end of the week was seen as a boost to gold demand with lingering uncertainty in the Middle East and concerns over the alliance between Russian President Vladimir Putin and South Korean Kim Jong Un.
Price movements on the XAU/USD chart which measures the value of gold against the US dollar are watched by investors.
The price is seen to have managed to break out of the previous horizontal range with yesterday's rise having crossed the resistance level of 2340.00 tested since last week.
A bullish price signal was identified earlier by investors last Tuesday when the price moved above the Moving Average 50 (MA50) support line on the 1-hour time frame on the chart.
The rise up to yesterday's New York session has reached a new high at 2365.00 and that level has become price-tested resistance throughout the Asian session this morning (Friday).
A higher move will be expected for the price to test the concentration zone at 2380.00 and will try to break the 2387.00 high reached in early June.
Next, for a sustained bullish movement, the target will be re-directed at the previous focus level of 2340.00.
However, if the bearish price falls again at the close of this week's trading session, a move below the 2340.00 level will put pressure on the price of gold to move lower.
The nearest support zone for the price is at 2300.00 which still managed to restrain the price drop last week.
