After experiencing a significant price drop last week, gold trading gave investors some relief when it showed a recovery at the beginning of this week.
The price increase is approaching the $2,900 level which has been a focus area for the past few weeks.
Market sentiment, which was assessed to remain risky at the opening of March, lifted gold back from the fall at the end of February.
It can be seen on the XAU/USD chart which measures the value of gold against the US dollar, the price has recovered from the decline at the end of last week which reached around 2833.00.
The price of gold began to move up on Monday yesterday and crossed the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the chart, which shows a bullish signal for the price again.
The price increase passed 2800.00 and hovered horizontally around 2890.00 until trading resumed in the Asian session this morning (Tuesday).
Prices rose slightly in the early European session to test the important level of 2900.00.
Price movement if seen to successfully jump above 2900.00 will strengthen expectations for the bullish trend to continue again.
Next, prices will head back to the resistance zone at 2950.00 which was tested in previous weeks.
However, if the 2900.00 level is not successfully surpassed, investors will watch for signs of prices returning to make a decline again.
A decline below the MA50 line will then expect prices to reach the 2833.00 level last week before going lower.
Furthermore, the focus zone at 2800.00 awaits to be tested again by prices after the last time prices traded around that level in early February.
