Market sentiment which is seen to be recovering has reduced investor attraction to the gold commodity making it difficult for its value to soar and hover around the $ 1,800 level throughout the week.
On the XAU/USD price chart which measures the value of gold against the US dollar saw the rise in gold price this week only reaching the high of 1824.00, failing to surpass the high reached last week.
The price rebounded to test the support level of 1800.00 in the RBS (resistance become support) zone which still remained supportive from falling lower for trading entering the third week.
Yet investors are likely to need to be more cautious this week than last week due to bearish signals in the price of gold where the price has started to move again below the Moving Average 50 (MA50) barrier level.
Today’s European session (Thursday) saw the price once again make an attempt to break the 1800.00-1790.00 zone after failing yesterday.
If the price falls lower, analysts expect the price of gold to decline back up to the previous focus level at 1765.00 and further at 1745.00.
However, if the 1800.00 zone manages to support the rebound, the bulls will test the resistance level at 1824.00 this week and the 1830.00 level last week.
The rise above these resistance levels will then target the SBR (support become resistance) zone of 1850.00.
