Continuing to add to the wounds for gold investors, the precious commodity again displayed a fall in value in contrast to the surge situation at the beginning of the week which reassured investors.
The XAU/USD price chart which measures the value of gold against the US dollar at the beginning of the week has seen the price soar to pass the important level of 1800.00 giving a positive signal for a bullish trend.
However, the situation did not last long when the price fell again below the 1800.00 level on Wednesday yesterday to the 1783.00 level in the New York session.
A drop below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame returns signals a reversal of the bearish trend for gold trading.
Uncertain sentiment for the movement of the US dollar makes investors wary of any unexpected price changes that may occur in the market.
The lower price decline will lead to the focus level around 1765.00 before after the rise above that level in the last 2 weeks.
The continued decline will test the 1745.00 level and a decline below this level will push the gold price to fall to the 1700.00 support zone again.
However, if the gold price manages to rebound above the 1800.00 level, it will provide relief for investors to expect the bullish trend to continue.
For higher rises, the resistance level at 1830.00 will be the focus to be tested first before the next rise will target the 1850.00 high.
