Is GOLD Decline At The Beginning Of The Week Only Temporary?

 In last Friday's trading, the price of gold has jumped above the high level reached in the same week which is the resistance level of 1920.00 on the XAU / USD price chart.


The closing price of the trade reached the level of 1930.00 as the US dollar depreciated more significantly over the weekend trading.


Investors are optimistic the agreement reached on US economic stimulus package talks will push the US dollar safe-haven currency to a downtrend.


However, trading earlier this week strengthened the US dollar a bit over the weekend talks between House Speaker Nancy Pelosi and US Treasury Secretary Steven Mnuchin.


Trading at the beginning of the week saw the price of gold return to the level of 1920.00 for the price to test the RBS zone (resistance become support).


The US dollar is expected to continue weakening this week in the hope that the US economic package will yield positive results.


The higher price is expected to surpass the 1930.00 highs to reach the latest 3-week high.



However, if the price breaks above the support level of Moving Average 50 (MA50) within the 1 hour time frame of the price movement, the lower decline is expected to reach the level of 1900.00 again.