Gold prices moved flat at the start of trading this week after the uptrend was shown last weekend from the $ 1,850 support level.
On the XAU / USD chart which measures the price of gold against the US dollar, it can be seen that the price is showing an increase from the support zone of 1850.00 to the resistance level of 1875.00 in last week's trade.
Market volatility due to mixed sentiment failed to give clearer direction for gold prices affected by US dollar trading.
At the beginning of the week, the US dollar moved weaker against other major currencies but gold failed to take advantage of the opportunity to rise to higher levels.
Prices moved slowly in the Asian session flat below the resistance level of 1875.00 before showing signs of decline in the European session.
However, the price is seen to be supported by the support level of Moving Average 50 (MA50) in the 1 hour time frame and is likely to continue higher above the 1875.00 level.
The next rise will return to the focus level of 1900.00 which was the resistance zone last week which failed to penetrate the price.
If the price drops lower, the support zone of 1850.00 will be tested again where it is still the price support level for several weeks which prevents the price of gold from falling lower.
A drop below that level would expect the price to move to the next focus level in the 1800.00 zone.
