Market risk is increasingly felt in the continuation of the European session today with the European currency moving weakly while the US dollar continues to show strengthening as a safe-haven currency.
The strengthening of the US dollar has had the effect of a decline in the price of gold in the European session erasing the profits made by investors on rising prices in the Asian session.
The price increase on the XAU / USD chart today has tested the high level in yesterday's trade around 1910.00 which is the SBR zone (support become resistance).
However, the price again made a decline in the European session to the Moving Average 50 (MA50) support level within the 1 hour time frame of the price moving back to the important level of 1900.00.
Previous analysts remain expecting prices to continue hovering around the 1900.00 level following market volatility fueled by a number of focus issues such as pandemic waves, US economic stimulus packages and Brexit negotiations.
Investors will expect the 1875.00 level to support the price if the gold price falls below the 1900.00 level.
Meanwhile, if the price increase occurs again, the SBR zone 1910.00 will be tested before the price increase that successfully penetrates the zone is seen to lead to the resistance zone below the level of 1938.00.
