Investors can breathe a sigh of relief for a moment when the decline in the price of gold was successfully contained with the rise successfully exhibited in the trading of the New York session yesterday.
Check out the key levels on the XAU/USD price chart which measures the value of gold against the US dollar for the week.
Having seen the price of gold continue to decline from the focus level of 1875.00, analysts have been expecting for the price to fall testing the support zone around 1850.00.
Meet expectations when prices once again react to the zone.
After the decline tested the zone, the price increase reappeared around 200 pips but failed to pass the higher rise above the 1870.00 level.
The price movement below the Moving Average 50 (MA50) barrier level on the 1 -hour movement on the XAU/USD chart also still signals for a decline.
If the upside remains restrained at the 1870.00-1875.00 resistance, investors are likely to see a lower fall in the price of gold below the 1850.00 level this week.
Even for the bearish trend displayed, the price is seen to return to the previous focus level of 1800.00 which is in the RBS zone (resistance become support).
However, if the price manages to jump past 1875.00, the price increase is expected to resume towards the resistance zone of 1900.00.
The zone remained holding back price increases for the previous few weeks dampening investors ’hopes of seeing gold prices continue to hit recent highs.
