Gold trading continued to show a significant drop in prices over the past week from a high of almost $ 1,960 to well below the $ 1,900 level.
With the trend remaining bearish, prices continue to decline at the beginning of today's Asian session as shown on the XAU / USD price chart.
Last Friday, it could be seen that the price plunged below the 1900.00 level before breaking the support level in 1875.00 and then passing the 1850.00 zone. Nearly 900 pips daily price drop recorded!
The continuing decline in the Asian session this morning reached its latest low of 1817.00 with more than 300 pips declining before prices soared again until trading entered the European session.
The price increase shown is seen testing the level of 1850.00 in the SBR zone (support become resistance).
Analysts expect the price of gold to fall lower following the strengthening of the US dollar in the near term.
While the strengthening of the US dollar was influenced by the increase in US treasury yields which attracted investors to buy US dollars.
If prices continue to decline in the New York session, it is likely that prices will fall lower than the levels reached in this morning's Asian session.
The lower price target is seen at the previous focus level which is at the price zone of 18000.00. Previously, the price managed to surpass the increase at this level in early December.
If the increase in the price of gold is successfully continued, among the price levels that are the focus is in 1875.00 and SBR zone 1900.00.
