Gold trading continued to lose while the US dollar continued to show strengthening towards the weekend.
After investors saw the gold price drop below the $ 1,800 level on Tuesday, the decline did not end there as prices continued to fall lower.
On the XAU / USD price chart which measures the value of gold against the US dollar, the price has continued to decline up to the level of 1770.00 as of the New York session yesterday.
Prices are seen to remain moving below the Moving Average 50 (MA50) barrier level within the 1 hour time frame of the price movement which is still showing bearish trend signals.
However, trading that continued until the European session today (Thursday) saw the gold price rise again to the SBR zone (support become resistance) around 1785.00.
The level was previously supportive of the price during the decline in trade in early February, but was successfully broken this week.
The price increase to the SBR zone will be monitored before the MA50 barrier will also be tested to see if the price can penetrate it.
If it fails, the price is expected to continue lowering down to the support zone at 1765.00. This level also became the price support level during November trading last year.
If the price manages to continue rising higher past the MA50 barrier, the next level of focus at 1800.00 will be tested.
A higher rise in anticipation of a trend change on the XAU / USD chart will push the price towards the resistance zone at 1820.00 again.
