I thought it was hot until the evening, apparently it was raining at noon. What has happened to the gold trade?
Last week investors were disappointed when the price of gold again fell again at the weekend after giving hope on the uptrend pattern earlier in the week.
On the XAU/USD price chart which measures the value of gold against the US dollar
After rising to the resistance zone of 1740.00, the price plunged back to the level of 1700.00 on Friday. But before the New York session ended, the price closed the trade higher again above the 1720.00 level.
The 1700.00 level is seen as a price support where analysts have previously expected the price zone between 1700.00-1680.00 to determine the direction of gold price movement.
After a series of continuous price declines since the beginning of the year, the zone is seen as a support zone for prices to rebound.
The rebound in the price of gold is expected to start until heading back to the key focus level of 1800.00.
However, if the US dollar manages to strengthen and put pressure on the value of gold, the price may fall again and the price reaction below the 1700.00 zone will be assessed.
The nearest support level is seen at 1720.00 and the price moving above the Moving Average 50 (MA50) support level on the 1 hour time frame signals for the price to continue the uptrend.
Even so, investors are also wary of US dollar trading this week ahead of the FOMC meeting early Thursday morning which will have a big impact on the US dollar.
If the price manages to make a rise, before reaching the focus level of 1800.00, the price must first pass the resistance level at 1745.00 and also the SBR zone (support become resistance) 1765.00.
On the other hand, a price that falls above the 1680.00 level will add to the anxiety for investors for the price to hit the latest 11 -month low.
