Gold trading received selling pressure earlier in the week saw a decline in prices on the XAU/USD chart which measures the value of gold against the US dollar.
Looking back at last week’s price movement, the surge up to the 1755.00 level following the FOMC meeting failed to be sustained after the price made a decline back to the 1720.00 support level.
Gold price movements remained driven by changes in the value of the US dollar where rising US bond yields over the weekend put pressure for the value of gold to soar.
Closing trading around the 1745.00 level, the price resumed trading earlier this week with a decline from that level.
A drop below the Moving Average 50 (MA50) barrier level in the 1 -hour time frame also signals a bearish trend. Yet analysts still expect an increase in the value of gold for a longer period.
However, in the near future, the strengthening of the US dollar is expected to push the price of gold to fall lower.
The support level of 1720.00 will be tested before the lower decline will lead to the level around 1700.00.
On the other hand, if the price of gold manages to jump back this week, the resistance level that will be encountered is at 1745.00 and also the high level of 1755.00 reached last week.
Next, the SBR (support become resistance) 1765.00 zone is still the focus to test the price before continuing the bullish trend up to the 1800.00 level again.
