The recurring scenario has certainly left investors frustrated with the movement of gold for the past few weeks.
As of yesterday, the rise in gold prices once again almost touched the $ 1800 target level before plunging back influenced by the movement of the US dollar in the market.
Observing the price movement on the XAU/USD chart which measures the value of gold against the US dollar, the price was seen declining in the Asian session yesterday before rebounding in the European session due to the depreciation of the US dollar in reaction to the decline in US treasury yields.
Investors' excitement did not last long when they had to see prices plummet again at the beginning of the New York session after approaching the 1800.00 level.
A statement by U.S. Treasury Secretary Janet Yellen giving clues for an increase in U.S. interest rates has been the focus of the market and boosted U.S. dollar trading.
Thus, the price of gold has jumped around 280 pips to the level of around 1770.00 breaking the support level of Moving Average 50 (MA50) on the 1 hour time frame of the price movement for the bearish signal on the XAU/USD chart.
In the Asian session trading on Wednesday morning as well, the bulls were seen failing to pass the MA50 barrier before making a continued decline into the European market session.
A lower decline is expected and disappoints investors with the expectation of the price to head to the 1765.00 zone again.
If the bearish trend of the price continues, the price will decline lower up to the previous focus levels of 1745.00 and 1720.00.
But if the price of gold soars again, the 1800.00 stronghold will still be the main focus to be tested and penetrated.
