Gold prices resumed last week’s horizontal movement on this week’s trading crew while investors are still waiting for clearer signals for the US dollar.
While the US stock market rose and put pressure on the US dollar as a safe-haven currency, the increase in US bond yields was seen to support the US dollar from continuing to depreciate.
Price movements are also expected to slow at the beginning of the week while awaiting the NFP employment data report on Friday which is the main focus event this week.
Thus, this situation will continue to affect the movement of gold price which is also flat as last week as shown on the XAU/USD chart which measures the value of gold against the US dollar.
The decline is seen to be supported at the support zone of 1765.00 which was touched by the price in the last 2 weeks of trading.
If the price manages to slip lower past that zone, the nearest level to be tested is seen at 1745.00 before the focus level will return targeted at 1700.00.
On the other hand if the price manages to make a rise, the resistance level of 1800.00 will be retested to give a clearer price signal.
A higher rise above that level will give an early signal for a bullish trend to head back to the SBR (support become resistance) zone at 1850.00.
