Gold trading has entered its seventh day where the price movement hovered in the range of $ 1,745.00 to $ 1,720.00.
You can see the price movement on the XAU/USD chart which measures the value of gold against the US dollar, although the price managed to reach a high of around 1755.00 in the last 2 weeks, but the price went back down to the zone until trading resumed earlier this week.
Gold failed to attract investors over the past week while coming under pressure by the strengthening US dollar.
The 1720.00 level is seen as a price support level that will be tested before the price returns to make a rise again.
If the price falls above that level, investors will be prepared for a lower decline in the value of gold up to the previous focus level of 1700.00.
On the other hand, if the price makes a rise, the resistance level of 1745.00 will be tested again after failing to break last week.
A higher rise will test the previously reached 1755.00 high before continuing the rise towards the SBR (support become resistance) zone of 1765.00.
Analysts forecast that since last month, the price that managed to move higher past the SBR 1765.00 zone will return to the important level of 1800.00.
For the near term, however, the projection is seen to be quite difficult with the strengthening exhibited by the US dollar putting pressure on the current value of gold in the market.
Investors are also more wary of prolonged horizontal movements of gold before aggressive price movements can be triggered and increase investor trading risk.
