Gold investors were unhappy with the fall in prices on the yellow metal trade yesterday to the latest monthly lows affected by the strengthening of the US dollar at the New York session yesterday.
The XAU / USD price chart, which measures the price of gold against the US dollar, has seen the price drop below the support level of 1850.00, recording the latest low since trading last July.
The strengthening of the US dollar was supported by the reading of economic data for the US manufacturing and services sector for November which showed rising numbers despite the pandemic crisis.
This shows that the US economic sector is still moving well and gives investors confidence in the current performance of the world's largest economy.
After hitting a low of around 1831.00 in the New York session, gold prices continued to decline lower in today's Asian session to around 1822.00 before showing a slight rise at the beginning of the European session.
Analysts see a decline in the price of gold will lead to the level of 1800.00 which is the price support level after the last price crossed that level since last July.
However, if the price returns to rise again, the level of 1850.00 will be re-tested which forms the latest SBR (support become resistance) zone.
Meanwhile, the development of vaccines and cases of viral infections will continue to be monitored by investors which will affect current market sentiment.
