The pattern of gold price movement is seen to be more flat this week compared to the significant spike exhibited last week.
The XAU/USD price chart which measures the value of gold against the US dollar is seen moving horizontally below the 1850.00 focus level with the high level reached earlier in the week around 1845.00.
After slowing down in the Asian and European sessions yesterday, prices were seen making a decline in the New York session following the strengthening by the US dollar.
However, the decline only tested the 1820.00 zone and failed to continue the lower decline heading back to the 1800.00 level.
The price again closed higher trading in the New York session and continued on today's trading, the price moved below the Moving Average 50 (MA50) barrier level in the 1 hour time frame of price movement for the bearish trend signal.
Investors are still wary of the release of inflation data and US retail sales data this week which will affect the movement of the US dollar.
A higher rise in the price of gold is seen to test the resistance of 1850.00 before heading to the next focus level at the high of 1875.00.
On the other hand if the price plunges below the price zone of 1820.00, the price is expected to re -test the RBS (resistance become support) zone of 1800.00.
The zone had previously been a resistance that failed to break the price after being tested for several weeks.
Investors will evaluate the price reaction in the zone for an indication of the direction of further gold price movements.
