The upward momentum in gold prices began to gloom after almost reaching the $ 1,800 level this week as the strengthening US dollar returned to overtake the precious commodity.
Previously, despite the strong US dollar, gold remained on the rise due to investor attraction to riskier assets in a risky market environment.
However, as can be seen on the XAU/USD price chart which measures the value of gold against the US dollar, the price began to flatten and there were signs of decline after the rise entered the SBR (support become resistance) zone of 1800.00.
After the zone became an obstacle for gold price to continue rising, the price started moving below the Moving Average 50 (MA50) support level again for a bearish movement signal.
For a bearish situation, the 1765.00 level will be the initial focus level before the decline continues to the 1745.00 level.
A lower decline of these levels will again push the price expectation towards the support zone at 1700.00-1680.00.
Yet if the price still tries to continue last week’s bullish series, the 1800.00 resistance will once again be tested for a break.
Passing the zone will give an indication for the price to continue the bullish trend movement.
The higher price increase is seen to lead to the previous resistance level around 1830.00 before continuing further increase to the focus zone of 1850.00.
