As worried by gold investors, the value of the yellow metal moved back below the $ 1,800 price level resumed in trading today (Tuesday).
On the XAU/USD price chart which measures the value of gold against the US dollar saw the rise displayed yesterday just testing last Friday’s high around 1810.00 before making a further decline.
Ending the New York session trading below the 1800.00 level, the price also moved below the Moving Average 50 (MA50) barrier level making investors wary for early signals of a bearish trend.
The movement of the US dollar, which affected the value of gold, was also seen weak at the beginning of the week while investors were still awaiting the outcome of the FOMC meeting in the early hours of Thursday morning.
The outcome of the meeting is expected to provide a clearer indication of the direction of gold price movements in the future.
The decline is expected to return to the level of 1765.00 before reaching the level of 1745.00 which was the price focus level in previous trades.
For a bearish trend, analysts expect the value of this commodity to hit the $ 1,700 level again.
If the price manages to recover to rise above the level of 1800.00, the resistance levels around 1820.00 and 1830.00 will be tested again.
A higher rise will lead to the SBR (support become resistance) zone at 1850.00 again after the price fell below that zone in the last 5 weeks.
