Back to worrying gold investors, the value of the precious yellow metal showed a more significant decline continuing at the opening of trading this week.
On the XAU/USD price chart which measures the value of gold against the US dollar, it can be seen that last Friday the price continued to fail to break the 1900.00 level which is the resistance zone for the gold price.
The decline returned to the support level of 1875.00 before last week's trading ended following the US dollar managed to record a strengthening again supported by published US consumer confidence data.
However, it continued to worsen in the market opening session earlier this week as gold prices continued to decline from the beginning of the Asian session to the European session.
The price continued to fall from the level of 1875.00 and as of 4.30 pm local time, the price has hit back to the lowest level recorded in the last 2 weeks around 1856.00.
The 1850.00 level is indeed a price support zone before which has been seen as a target zone for price decline.
It is also possible that if the downtrend continues, the price will continue to test the level around 1820.00 first before heading to the main focus zone at the level of 1800.00.
However, if the 1850.00 level manages to re -support the rise for the value of gold, the 1875.00 level will be the initial resistance before the price continues to rise higher.
Next, the 1900.00 resistance zone will return to the target to be tested before resuming the previous bullish trend.
The FOMC meeting this week which is expected to have a big impact on the US dollar is also seen to affect the movement of the value of gold in the market.
