Gold trading last week failed to gather surge momentum to break the $ 1,800 price level which is the latest resistance zone.
The price movement on the XAU/USD chart which measures the value of gold against the US dollar can be seen moving horizontally below the resistance of 1800.00 throughout the week.
The price managed to jump early last week from the support level of 1765.00 in the RBS zone (resistance become support) following the weak movement of the US dollar which gave room for gold to rise.
At the end of the week, the price of gold was seen to decline again after the rise was still unable to touch the level of 1800.00.
A decline of around 250 pips moving below the Moving Average 50 (MA50) barrier level in the 1 hour time frame of the price movement worries investors for the initial signal of the bearish trend.
Continuing trading this week, the price has moved slowly since the Asian session began and is seen testing the MA50 barrier which will give an indication of the direction of further gold movement.
If the US dollar remains weak ahead of the FOMC meeting this week, gold prices could likely show a rebound to test the 1800.00 resistance zone.
The price that manages to break the resistance zone of the focus will record the latest 11 -week high with the expectation of heading to the 1850.00 level tested last February.
On the other hand, if the price experiences a fall, the RBS 1765.00 zone will once again support the price to rise again.
Prices plunging below the zone will further strengthen the bearish trend signal on the XAU/USD chart.
The lower decline will lead back to the previous focus levels such as 1745.00, 1720.00 and also the support zone below the 1700.00 level.
