Gold moved strongly in the opening trade of January 2025 by displaying a positive price increase pattern.
Previously, the price of gold fell to around the $2,600 level during trading at the end of 2024.
However, the yellow metal managed to show excellent action on Wednesday and Thursday yesterday even when the US dollar currency also strengthened in the market.
Price movement was observed on the XAU/USD chart which measures the value of gold against the US dollar.
The price gave an initial signal last Wednesday when it rose from the 2600.00 level before the increase passed the Moving Average 50 (MA50) line on the 1-hour time frame on the chart for a bullish movement signal.
Then the price continued to increase yesterday Thursday until it surpassed last week's trading level which was flat below the 2640.00 level.
The price rise has reached the 2660.00 level and will continue today (Friday), but the momentum has slowed slightly in the European session.
The price rise is expected to continue, but will face challenges at the 2670.00 resistance first.
After successfully breaking through this level, the rise is likely to continue higher with the target to go up to 2700.00-2720.00.
However, if the price retreats down in the trading sessions of the last week, investors will watch for signs of a change in price direction again.
A decline below the MA50 line would expect the price to decline back to around 2600.00 which is a support for the price.
