The bullish momentum of gold began to fade after reaching the $ 1,830.00 level in this week's trading.
Investors were pleased with gold's performance after successfully continuing to rise above the $ 1,800 price level, but early signals for gold prices began to show a decline over the weekend making investors wary.
On the XAU/USD price chart which measures the value of gold against the US dollar saw a flat price movement yesterday versus a surge on Wednesday.
Yesterday, the price reached a high of around 1834.00 before declining back to the RBS (resistance become support) zone of 1820.00.
Yet the price is supported by the Moving Average 50 (MA50) support level on the 1 hour time frame which is still giving a bullish signal.
Makes investors wary as price movements in today’s European session start testing the MA50 support level to give early signs of a trend change.
If the price moves below the 1820.00 zone, the lower decline is seen heading back to the 1800.00 level in the main RBS zone.
A lower drop below the 1800.00 zone will give a clearer indication of a bearish trend with the expectation that the price of gold will decline further.
On the other hand if the bullish pattern is successfully maintained, the bullish can continue until the following week to continue to record the latest highs.
The main target of the rise is seen at the resistance of 1850.00 in the SBR zone (support become resistance) previously.
