Investors over the weekend saw a change in market sentiment that continued in favor of the US dollar.
Gold commodity trading was seen showing a fall in value after hitting a high of $ 1740 in the European session yesterday.
On the XAU/USD price chart which measures the value of gold against the US dollar yesterday saw a more significant fall in prices following the strengthening of the US dollar driven by a rebound in US treasury yields.
As of the European session on Friday, it was reported that US treasury yields continued to rise higher and continued to push gold prices lower.
After the price fell below the support level of 1720.00 in the Asian session, the price continued its lower decline in the European session towards the focus level of 1700.00.
Investors' expectations for the gold price to rise to the 1800 level again faltered when the price movement pattern on the XAU/USD chart returned to signal a bearish trend.
The price will make a decline to the previous support zone below the 1700.00 level where the 1680.00 level is the price support level tested at the end of last week.
If the current situation persists, it is worse for gold trading with the expectation for the price to fall lower to the latest 11 -month low.
However, if the US dollar weakens again, investors will again put their hopes for a rise in prices again.
Rising prices need to test the resistance level of 1745.00 first before heading to the SBR zone (support become resistance) 1765.00.
