Gold prices started a gloomy movement at the opening of trading earlier this week following the resumption of price declines exhibited at the end of last week.
Investors were a little disappointed when gold prices which were expected to continue the momentum of the surge on Thursday failed to be consummated with a weak move last Friday.
On the XAU/USD chart, which measures the value of gold against the US dollar, it can be seen that the price increase on Thursday has recorded a 2 -week high to the resistance zone of 1830.00 but declined again to close the weekend's trade around 1810.00.
The drop below the Moving Average 50 (MA50) barrier level in the 1 -hour time frame of the price movement also gives a bearish signal.
The price decline is seen to re -test the important zone of 1800.00 which has managed to support the price from falling lower over the previous few trading weeks.
If the price plunges below that zone, this will signal a lower fall in the value of gold will begin.
The previous focus support zone around 1765.00 and also 1745.00 will return to focus before the bearish target to hit the 1700.00 price zone again.
On the other hand if the price manages to rebound again this week, the resistance zone reached last week at 1830.00 is expected for the price to break through.
Next the RBS (resistance become support) zone of 1850.00 will be the focus for the continued price increase to signal the direction of further price movement.
Investors will be wary of the United States (US) NFP jobs report this week for the movement of the US dollar which also affects changes in the value of gold in the market.
