Price movements on the XAU / USD chart measuring the value of gold against the US dollar began to show a bearish trend change earlier in the week when prices failed to maintain last week's bullish pattern.
On Monday, the price of gold that made an increase to the focus level of 1900.00 plunged 500 pips before rising again half from the decline but has moved below the Moving Average 50 (MA50) barrier level within the 1 hour time frame of price movement.
The decline continued on Tuesday yesterday below the 1875.00 level and closed trading at the daily low around 1860.00.
The movement of gold and US dollar prices is still influenced by market risk sentiment where new virus variants are likely to hinder economic recovery.
In addition, the United States (US) economic stimulus package which was approved however was not liked by Donald Trump to be signed due to disagreement with the low value of aid to the people.
Gold prices have been moving flat since the Asian session this morning continued into the European session and are still below the MA50 barrier level.
A lower decline will be expected to test the RBS (resistance become support) zone of 1850.00 before a further decline potentially leads back to the 1800.00 concentration level.
If the price makes a rise again and breaks the resistance level of 1875.00 and the resistance of MA50, the resistance zone as well as the focus level at 1900.00 will be tested again this week.
