Is it true that investors are starting to worry because there are early signs that gold prices will fall again?
As can be seen on the XAU / USD price chart which measures the value of gold against the US dollar, a series of gains has been successfully maintained until Wednesday's trading.
The price of gold has successfully displayed a surge to reach the level of 1850.00 again. However, as soon as the price touched the resistance, the price dropped again to the level of 1835.00.
Technically, the Moving Average 50 (MA50) support level on the 1 hour time frame will give an early signal of a change in the price trend. But in the Asian session this morning (Thursday), prices have started to move below that level making investors wary.
Prices however tried to make a rise again at the beginning of the European market session.
The rise in the price of gold is still expected with the situation of the US dollar continuing to depreciate in the market.
Investors will be waiting for clearer price movement signals in the European session and at the New York session today.
If the rise continues, the resistance at 1850.00 will be re-tested for a rise towards the next resistance level in 1875.00.
The resistance level of 1875.00 was tested twice in January trading but the price failed to break through.
On the other hand, if the early signs of a decline are clearly giving a shadow of the fall in gold prices in the near future, price zones such as 1820.00 and even the level of 1800.00 should be given further attention by investors.
A lower decline is likely to reach the level of around 1765.00 which was the price support level during November trading last year.
