Gold investors smiled cheerfully as they saw the yellow metal's price increase again yesterday as the US dollar continued to suffer a decline heading into the end of the week trade.
The expected United States (US) NFP jobs report on Friday looked gloomy with the ADP data reading which was an early indicator coming in with a figure lower than forecast.
Risks to the volatile US dollar trade give gold the edge to shine again.
On the XAU/USD chart which measures the value of gold against the US dollar, the price is seen hovering around 2315.00 at the beginning of this week.
However, the price has managed to show an increase again yesterday until it continued in the Asian session this morning until it managed to reach the level of 2370.00 again.
The increase is seen to have successfully overcome last week's trading level which was flat below 2360.00.
The 2370.00 zone is tested as a resistance that needs to be broken before the price resumes the uptrend to higher levels after this.
If the price rises strongly, the focus level at 2430.00 can be reached again and further challenge the record high of 2450.00.
However, if the rising pattern fails to be maintained, investors need to be prepared to witness a fall in the price of gold again, which is indeed risky to happen in this volatile market environment.
The decline is seen to reach the support level at 2300.00 and price reaction around that will be evaluated for further direction of movement.
