Examining the movement of gold price on the XAU/USD chart which measures the value of gold against the US dollar, the price has disappointed investors when making a decline after reaching an 8 -week high.
Reaching a high of around 1790.00, the price slipped back below the Moving Average 50 (MA50) barrier level in the 1 -hour time frame of the price movement inviting restless investors with signals for the price decline.
However, the price is supported at the level of 1765.00 which is the latest RBS (resistance become support) zone and showed an increase yesterday.
Market risk sentiment also supported demand for gold while the strengthening US dollar was overshadowed by a decline in US treasury yields.
Resuming trading on Wednesday, the price continued to rise testing the highs reached earlier in the week.
Analysts had previously expected a rise in the price of gold bullion to head to the focus level at 1800.00
If the rise is successful, the 1800.00 level will be tested and it is likely that the price can rise higher to record the latest highs.
Yet if the price again fails to sustain the rise, the re -decline of the price will return to the RBS 1765.00 zone.
Prices that fall lower below the zone will head back to previous focus levels such as at the lower 1745.00 or 1720.00 levels.
