Is GOLD Ready To Plunge, Or…

 


1546/5000

The gold price move flat after a sharp decline on Tuesday as markets reacted to President Donald Trump's decision on the United States (US) economic stimulus package.


The changing value of the US dollar is now affecting the trading value of gold. If discussions of the implementation of the stimulus package result in negative results, the US dollar as a safe-haven will be strengthened.


The strengthening of the US dollar will put pressure on gold trading with the expected price decline on the XAU / USD price chart.


The decline on display early Wednesday morning when Trump's surprise decision to halt talks saw the price drop to 1875.00.


Then the price moved back up but remained below the 1900.00 level


The continuous price movement today is seen testing the Moving Average 50 (MA50) barrier level on the 1 hour time frame which will give an early signal of a change in the price trend.


If the rise is above that level, the level of 1900.00 will be an important resistance whether the price will fall again or pass it.


A higher rise is likely to soar towards the concentration level around 1938.00 which is in the SBR zone (support become resistance).



On the other hand, if the price returns to decline, the support level of 1875.00 will be re-directed for the price to test the RBS zone (resistance become support).


A lower decline is seen heading towards the 1850.00 support zone tested in last September's trade.