Gold trading completes the horizontal movement of prices throughout the week after investors saw a significant drop in the value of the yellow metal in the previous week.
If you look at the price on the XAU / USD chart which measures the value of gold against the US dollar, after the price touched the lowest level at the beginning of the week around 1817.00, the price started to rise again but showed a more horizontal movement.
The price increase also did not reach the resistance level of 1875.00 in the SBR zone (support become resistance).
Price sentiment sentiment is seen to revolve around the situation in the United States (US) with the proposed economic stimulus package by future President Joe Biden as well as a speech by Federal Reserve (Fed) Chairman Jerome Powell.
The price of gold was influenced by the volatility of the US dollar in the market where the latest developments show a resurgence of the US dollar after a dovish speech by Powell for further policy easing in the US.
The price hovered around the 1850.00 level and even slower at that price level in today's trading before closing the trading curtain this week.
If a price drop occurs, the support zone at 1820.00 will be tested again before the price gives an indication to continue lowering or re-raising the price.
If the increase is successful, the price will retest the SBR 1875.00 zone before the higher jump leads to the 1900.00 concentration level.
Investors will remain vigilant until the price signals a clearer direction of movement in the market.
