Yellow metal commodity analysts' expectations came true when gold prices dropped to $ 1,800 in New York session trading yesterday.
Like the price movement shown on the XAU / USD chart, the price has made a decline from the high level of 1875.00 to break through the support zone of 1850.00 at the start of trading at the beginning of the week.
The decline continued on Tuesday yesterday when the price dropped to the level of 1800.00 recording the latest low of 4 months.
That level became the price support level after the price managed to break to a higher level in trading last July.
Investors need to continue to monitor current market sentiment to anticipate the movement of gold prices affected by the change in the value of the US dollar in the market.
The US dollar is currently seen to be declining as the market puts confidence in the positive development of the vaccine as well as the factor in restoring political sentiment in the United States (US) which also has the effect of depreciating the US dollar.
In today's trading, the price is moving horizontally above the level of 1800.00 with the increase seen to test the dynamic barrier level of Moving Average 50 (MA50) in the 1 hour time frame of the price movement which still shows a bearish trend.
If the increase is successfully passed beyond MA50, the SBR zone (support become resistance) 1850.00 will be re-tested which will be price resistance.
However, if the price continues to decline below the 1800.00 level, the latest low since July will be recorded is likely to move around the support level of 1760.00.
