Worse when investors had to witness a significant drop in gold trading on Thursday yesterday following the continued strengthening of the US dollar.
On the XAU / USD price chart which measures the value of gold against the US dollar, the price declined lower to below the 1800.00 level which is seen as the price support level.
However, after the price reached a low of around 1785.00, the bearish momentum began to decline and the price moved slowly until the end of the New York session.
Gold trading continued slowly in the Asian session this morning, but prices were seen showing a resurgence in the European session above the 1800.00 level.
Investors are wary of weekend trading following the US NFP (US) employment report to be published at 9.30pm Malaysian time.
Price movements are expected to be more aggressive as reports are published specifically on the US dollar which will also affect the value of gold in the market.
Investors are still seeing a bearish trend on the gold price chart with price movements still below the Moving Average 50 (MA50) barrier over the 1 hour time frame which will prevent further gains.
Passing the barrier will again signal a bullish trend change on the XAU / USD chart while the resistance zone at 1820.00 will be tested.
Next, the price increase is seen to return to the focus level of 1850.00.
On the other hand, if the price resumes a decline below the 1800.00 level, the lowest level reached yesterday at around 1785.00 will be tested.
The continued decline in prices will lead to the support zone of 1765.00 which was the price support level in November last year.
