Gold trading today slipped lower to continue the decline for the third day in a row since last Friday.
At the end of last week, the price of gold has actually started giving an early signal for a bearish trend to end the series of gains over the past week.
The price movement on the XAU/USD chart which measures the value of gold against the US dollar has made a decline from the 1758.00 level in the SBR (support become resistance) zone to below the 1745.00 level again.
The price has also dropped below the Moving Average 50 (MA50) barrier level in the 1 hour time frame of the price movement for the price indicator will make a decline for this week.
But the decline was still slow at the beginning of the week as investors were wary of US dollar trading ahead of US inflation data in tonight's New York session.
However, the resumption of US treasury yields will support the strengthening of the US dollar in the market and will also lead to a lower decline in current gold trade.
The decline is seen to test the support levels at 1720.00 before the lower decline is likely to return to the support zones at 1700.00 and 1680.00.
On the other hand if the price manages to rebound, the resistance level of 1745.00 will be tested again before the price heads to the SBR zone of 1765.00.
A higher price increase beyond the SBR zone will push the gold price to reach the previous 1800.00 price level.
