Starting the market’s opening trade earlier this week, gold moved slightly lower after a successful rally was displayed at the end of last week.
On the XAU/USD price chart which measures the value of gold against the US dollar, it can be seen that the price of gold re -emerged to make an increase after plunging below the 1700.00 level at the opening of early trading last week.
The price increase displayed has passed important levels such as the level of 1745.00 and also the resistance of 1765.00 which is the price drop zone earlier in the week.
Last Wednesday, investors had already started receiving early signals for gold’s bullish movement after the price rose past the Moving Average 50 (MA50) support level on the 1 -hour time frame on the XAU/USD chart.
However, investors remained vigilant to control risk and waited for clearer signals after seeing a drastic drop in prices earlier in the week.
After the rally has already passed the 1765.00 barrier, analysts expect the gold price this week to head back to the 1800.00 level to test the SBR (support become resistance) zone.
The expectation was driven by the depreciation of the US dollar over the weekend which is likely to continue this week.
Passing the SBR 1800.00 zone will target the 1830.00 high level which was the price resistance before and also the SBR 1850.00 zone for the next target.
On the other hand if the US dollar strengthens again this week and re -presses the price of gold to fall lower, the focus levels of 1765.00 and 1745.00 will return to attention.
A clearer bearish trend will push gold price expectations to decline back to the 1700.00-1680.00 support zone.
