Gold prices also plunged sharply last week after the FOMC meeting which saw the re -strengthening of the US dollar in the market.
However, in the previous week, gold trading was already showing signs of starting a bearish trend after the price reached the $ 1,900 level.
On the XAU/USD price chart which measures the value of gold against the US dollar, the 1900.00 level is seen as a price resistance zone after several failed breaches before investors saw the price decline take place.
Last week, the decline in the price that has managed to break the RBS (resistance become support) zone of 1800.00 continued the decline up to the support zone of 1765.00 as expected by analysts.
This is the lowest price level recorded for the 7 -week trading period.
With the momentum displayed, investors will be poised for a lower decline this week.
Trading earlier this week however exhibited gains since the Asian session started testing a rise of over 150 pips from the support level of 1765.00 and tested the Moving Average 50 (MA50) resistance level on the 1 hour time frame at the beginning of the European session.
The upside is only expected to test the 1800.00 level which will be the resistance before the price resumes its decline.
While a lower decline below the 1765.00 level will be seen to test the 1745.00 level before continuing the decline to the next focus level at 1720.00.
On the other hand, if the price manages to make a rise again above the 1800.00 level, the price focus level is seen at the 1720.00 zone before heading to the SBR (support become resistance) zone of 1850.00.
