Market sentiment is seen as failing to drive the movement of the gold price, instead, the change in the value of the US dollar since last week has been a factor driving the price of the yellow metal to move.
The strong strengthening of the US dollar last week sank the gold price to fall to a 9-week low as shown on the XAU / USD price chart.
After touching the lowest level of 1850.00 on Khami, the price was seen trying to make a rise but failed to pass the SBR zone (support become resistance) 1875.00 before descending again and closing last week's trade below that level.
Market sentiment as well as changes in the value of the US dollar this week will affect the movement of gold prices. Investors will monitor the progress of the US election debate as well as be vigilant ahead of the NFP employment data report over the weekend.
In addition, the development of the implementation of the US economic stimulus package will also be monitored which will have a big impact on US dollar trading as well as affect the movement of gold prices.
Continued trading in the Asian session this morning is seen moving below the Moving Average 50 (MA50) barrier level at the 1-hour price movement.
The price once again tested the support level of 1850.00 in the European session with the expectation that the decline will continue to the lows.
It is likely that the price will fall back to the 1800.00 price level if the US dollar continues to strengthen its momentum this week.
On the other hand, if the price of gold rises again, the level of focus seen to be tested is at SBR 1875.00 before heading back to the price level of 1900.00.
