The annoyance of gold investors did not stop when the price showed a downward trend until the weekend.
If you look at the price movement on the XAU / USD chart which measures the value of gold against the US dollar for this week, the price has depreciated below the level of 1800.00 inviting investor frustration that expects gold prices to rise.
In trading last Wednesday, the price of gold has fallen below the Moving Average 50 (MA50) barrier level in the 1 hour time frame signaling a bearish trend.
The situation has extinguished the hopes of investors to see the increase in the price of gold displayed at the beginning of the week but hindered at the resistance of 1814.00 in the SBR zone (support become resistance).
The US dollar strengthened again over the weekend and also put pressure on the value of gold in the market.
The decline of almost 400 pips yesterday also passed the RBS zone (resistance become support) 1785.00 before the price continued to continue the decline in today's trading.
Investors see prices continuing to decline as the momentum displayed has successfully penetrated the support zone of 1765.00 which was also tested last week.
The next price drop will lead to a lower level around 1745.00 which is seen to be a support level for the fall in gold prices.
If the price manages to make a re-increase, the SBR zone 1785.00 will be the focus of the re-price and the MA50 barrier level will also be tested.
A successful price increase and re-passing the 1800.00 level will provide relief for gold investors.
