The price of gold did not provide any surprises to investors heading into weekend trading by only witnessing a horizontal movement.
Failing to give a clear directional signal, the price of gold this week remained moving below the $ 1,800 level with the support level at $ 1,765.
The change in the value of gold was influenced by the movement of the US dollar, but investors this week returned to be wary of US dollar trading following mixed views by members of the Federal Reserve (Fed) in monetary policy talks.
On the XAU/USD price chart which measures the value of gold against the US dollar, it can be observed for 3 consecutive days the price did not fall lower than the 1773.00 level.
Even so, the price also failed to get the rhythm to consolidate with this week’s high only reaching around 1794.00 last Wednesday.
Investors' expectations to see prices continue to decline like last week slipped and should wait for trading to continue next week.
If the price makes a decline below the support zone of 1765.00, the price expectation will tend to continue lower with the nearest level of focus seen at 1745.00.
For a lower target, analysts project for gold price to decline back to the previous focus level of 1700.00.
However, if the price manages to rise above the resistance level of 1800.00, it will give relief to investors to signal a bullish trend again.
The price will continue to rise to head to the SBR zone (support become resistance) 1850.00 after passing the resistance at the price level around 1820.00.
