Gold trading on Wednesday showed more horizontal movement after soaring at the beginning of the New York session yesterday after market reactions made the US dollar depreciate.
In the previous session yesterday, the price of gold was seen declining continuing the decline since last Friday, but the price rebounded again to signal a bullish trend again.
On the XAU/USD price chart which measures the value of gold against the US dollar saw the price decline to the level of around 1724.00 then jump past the resistance level of 1745.00.
The price has also passed the Moving Average 50 (MA50) barrier on the 1 -hour time frame of the price movement for the bullish trend signal, however the price movement has slowed around the 1745.00 since the end of the New York session yesterday.
If the rise in gold price continues, last week's highs around 1757.00 and 1765.00 are seen as SBR (support become resistance) zones that will be tested by the price.
Higher price increases that pass the zone will head back to the 1800.00 focus level.
If the price returns to decline, the price support level is seen at the level of 1720.00 in the RBS zone (resistance become support) before.
The lower decline will head back to the support zone reached in March in the price range of 1700.00 to 1680.00.
