The movement of gold price is still in the horizontal zone and has not yet given a clear indication for further price direction.
On the XAU/USD price chart which measures the value of gold against the US dollar saw the price attempt to head to the 1800.00 level at the beginning of the New York session yesterday.
However, just reaching the level around 1795.00, the price declined again following the strengthening of the US dollar has pushed the price to a low level.
The drop below the Moving Average 50 (MA50) support level on the 1-hour time frame on the XAU/USD chart makes investors wary for early signals of a downtrend. But it is still early to see the direction more clearly.
The horizontal price movement around the 1775.00 level continued in the Asian session and the beginning of the European session today (Thursday).
The decline is expected to test the support zone at 1765.00 which was hit by the price at the close of trading last weekend.
Prices that manage to break through the zone will record the latest weekly lows and lows for 8 weeks with the nearest target level expected at around 1745.00.
If the price clearly shows a bearish trend again, investors will expect the price to head to the focus level at 1700.00 again in the following week.
On the other hand if the price makes a rise, the 1800.00 level will be tested as a price resistance zone before a rise above that level will give a signal for a bullish trend change.
The next gold price increase target will return to the SBR (support become resistance) zone of 1850.00.
