As gold investors were worried this week, the value of the yellow metal continued to decline lower in continued trading on Wednesday.
It can be seen that the price movement on the XAU/USD chart which measures the value of gold against the US dollar shows a bearish pattern after flattening at the beginning of the week.
Having failed to reach the expected level of 1800.00 last week, this week’s trading is moving below the resistance of 1785.00 and also below the Moving Average 50 (MA50) barrier on the 1 hour time frame for the bearish trend signal.
Continuing trading on Wednesday, the price saw milk lower at the beginning of the Asian session and headed to the RBS zone (resistance become support) at 1765.00.
The level has managed to re -support the price increase on last week’s decline. However, will the same situation be repeated this time or vice versa?
If the breakout price is lower beyond the RBS zone, the next decline is seen to be heading towards the focus level at 1745.00 before heading to the 1720.00 level on the next decline.
However, if the price manages to soar after testing the RBS 1765.00 zone, investors will re -place their hopes for gold to test the 1800.00 resistance zone.
The price of gold needs to pass that zone before successfully recording a rise to the latest 9 -week high.
The next 1815.00 zone will await the continued price increase that was previously the focus of February trading.
