After displaying a dismal performance from the beginning of the week until Wednesday, the gold commodity started to shine in trade towards the end of the week.
The rise in gold prices started in the New York session yesterday after the latest United States (US) inflation data was published with a somewhat mixed market reaction.
The price of gold managed to show an increase towards the end of the New York session and continued the momentum in the Asian session this morning (Friday).
Examining the movement on the XAU/USD chart which measures the value of gold against the US dollar, the price was pressed close to the 2600.00 level when the initial reaction to the US inflation data was published yesterday.
However, prices later bounced back up to overcome Wednesday's more flat trading levels.
The price increase also crossed the Moving Average 50 (MA50) obstacle line on the 1-hour time frame on the XAU/USD chart, which gives an early indication of a change in the bullish trend for gold.
After successfully reaching around 2630.00 at the close of the New York session, the price rally has continued today to a high of 2647.00.
The price movement was horizontal for a while in the European session, but it is expected to continue the bullish pattern in the next session.
The bullish price of gold is seen to return towards the target zone at 2670.00 which was seen as an important resistance tested last week.
A successful price surge beyond that zone will change expectations for gold with investors confident of seeing new record highs set again.
However, the opposite situation can occur due to the risk of volatile trading at the end of the week.
If there is a decline, the 2600.00 level becomes a 'hot' area for the price to continue to be tested after the price approached it yesterday.
A lower downward trend is an indication for the price to continue the bearish pattern displayed earlier.
