Gold trading this week recorded its biggest weekly jump since November last year touching its $ 1,875 high.
The XAU / USD price chart which measures the value of gold against the US dollar saw the price jump to the resistance level of 1875.00 from the lowest price level at the opening of trading earlier this week.
But towards the end of the week, the price is seen moving away from the resistance level after the price failed to penetrate to a higher level.
Friday's trading session also saw the price move back below the Moving Average 50 (MA50) support level over the 1-hour time frame which is likely to be an early indicator for further decline in gold prices.
The support level is seen at 1850.00 before the price continues to rise again and tests the resistance of 1875.00 again.
A higher increase is seen to be heading back to the SBR zone (support become resistance) 1900.00 which was the focus of the market before.
However, if the price continues to plummet, the support zone at 1820.00 will be tested before a lower decline towards the 1800.00 price zone.
