As worried by gold investors, the value of the precious yellow metal has slipped to the $ 1,700.00 level for trading as of the European session on Tuesday.
Since yesterday's New York session, gold prices have shown a significant fall in value following pressure from the strengthening US dollar after US treasury yields showed a rebound.
On the XAU/USD price chart which measures the value of gold against the US dollar has seen the price have moved lower below the 1720.00 level in the New York session yesterday.
Previously, the price has been moving in the price range of 1745.00-1720.00 for 6 consecutive days.
After the price dropped to the 1705.00 level yesterday, the decline continued again in the Asian and European sessions today retesting the 1700.00 support zone.
Gold prices are now seen to be increasingly depressed while several factors are supporting the strengthening of the US dollar.
In addition to risky market sentiment, US 10-year bond yields have soared to break new record highs after surpassing the 1.75 level reached last week.
The continued decline will test the support level of 1680.00 which was tested by the early trading price in March.
Prices that fall lower beyond that level will record the latest lows for the 11 -month trading period.
If the price manages to rebound, the initial resistance level to be tested is at 1720.00 in addition to the Moving Average 50 (MA50) barrier on the 1 hour time frame of the price movement.
Passing the MA50 barrier will again signal a bullish trend in the price again.
