Gold investors are certainly disappointed with the price movement exhibited by the precious yellow metal when it failed to maintain its upward momentum last week.
If you look at the XAU / USD price chart which measures the value of gold against the US dollar, the price has shown an increase from the support level of 1785.00 to the resistance level of 1850.00.
The depreciation of the US dollar over the past week has pushed the price of gold to trade higher.
But last weekend the price of gold fell again after the resistance level of 1850.00 failed to break. Prices are also falling below the Moving Average 50 (MA50) barrier level within the 1 hour time frame of the price movement which signals a change to the bearish trend.
At the opening of the trading session earlier this week, prices are still below the MA50 barrier with expectations for prices to likely fall lower.
Slow price movements with a slight drop in prices are seen still hovering in the 1820.00 zone up to the European session.
Investors were clearly disappointed with the losing gold trade even though the US dollar was still weakly evaluated earlier this week.
The price decline will decline again to the focus level of 1800.00 before the price that successfully passes it will re-test the previous support level of 1785.00.
If the price manages to get the re-strengthening rhythm, the rise is expected to return to the level of 1850.00 and try to break the resistance level.
Next the resistance level of 1875.00 will be a higher bullish target before the price heads back to the important level of 1900.00.
