The price movement on the XAU/USD chart which measures the value of gold against the US dollar is seen to maintain a series of declines until the end of last week.
After falling below the 1700.00 level, the price moved horizontally around that important zone and has not continued its lower decline.
Analysts previously expected the 1700.00-1680.00 zone as a support zone for prices to rebound. However, if prices continue to fall lower beyond that zone, investors will be increasingly anxious about the possibility that the value of gold will depreciate lower.
At the market opening earlier this week in the Asian session, the price was seen opening above the 1700.00 level and moving past the Moving Average 50 (MA50) barrier level in the 1 hour time frame of price movement.
Yet the price made a decline back to the level of around 1700.00 in trading that connected to the European market session.
The strengthening of the US dollar is seen to continue to put pressure on the value of gold. However, analysts also expect demand for gold to increase after the U.S. Senate approved a $ 1.9 trillion stimulus package.
If the price falls lower than the 1700.00-1680.00 price zone, the gold price will record its latest low since April 2020 possibly to the level of around 1660.00.
On the other hand if the price manages to jump, the price needs to pass the resistance level of 1720.00 to convince investors for further uptrend.
The higher rise will return to the SBR (support become resistance) zone of 1765.00 before the next rise to the focus level of 1800.00.
