As expected as the previous analysis, the price of gold continued to fall to a lower level after a series of price declines last week.
If you look at the price movement on the XAU / USD chart which measures the value of gold against the US dollar, the price has dropped from the resistance level of 1850.00 last week with the downtrend continuing to this week.
Earlier this week, the price initially flattened at the price zone of 1820.00 which became the price support zone after last week's decline.
However, the price of gold failed to bounce back before investors saw a fall below the 1800.00 level.
In Thursday's trading yesterday, the price tested the Moving Average 50 (MA50) barrier level over the 1 hour time frame but failed to break through before continuing to decline.
Investors see as a signal for the price to continue moving in a bearish trend.
SBR zone (support become resistance) 1785.00 is also seen to fail to penetrate when the price increase tests the MA50 barrier.
The Asian market session on Friday morning saw lower prices test the support level of 1765.00 but the price again made a rise until trading continued into the European session.
If the price of gold remains lower, the next target level is seen to be heading to the support level around 1745.00 thus recording the latest low of 8 weeks.
However, if the price starts to move above the MA50 resistance level, investors need to be vigilant for a reversal of the bullish trend.
The 1800.00 level will return to the focus of the bullish price which will be the initial resistance before the price continues to rise higher.
Subsequent increases will return to previous focus zones such as 1820.00 and also resistance 1850.00.
