The performance of the gold commodity did not meet investor expectations as bullish expectations at the beginning of the week failed to continue.
On the XAU/USD price chart, which measures the value of gold against the US dollar, the price has already jumped past the important level of 1800.00 at the beginning of the week due to the US dollar's re -depreciation factor.
Scanning last week’s trading, the strengthening US dollar has prevented the price of gold to cross the 1800.00 level making the price move flat over the past week.
But after the surge earlier this week, gold investors were disappointed to expect prices to continue to rise higher, but the opposite happened.
Continuing the Asian session this morning (Wednesday), added a wound for investors as the price of gold fell back below the 1800.00 level.
A decline moving below the Moving Average (MA50) level on the 1 -hour time frame also gives an early signal for a reversal of the bearish trend.
If a clear decline occurs, the nearest support level seen at 1765.00 before a lower decline will test the 1745.00 focus level.
The continued decline will push the gold price to the 1700.00 support zone again like trading a few weeks ago.
However, if the price manages to rise to rebound, the resistance level at 1830.00 will be tested after the price crosses the 1800.00 level again.
The higher rise targets the 1850.00 level as a price focus which has also been an important zone in previous trades.
