Adding to the frustration for gold investors is when the precious commodity depreciated yesterday to the $ 1,800 level again.
The decline in the value of gold was seen to be driven by the factor of rising US treasury yields from 1.13% to 1.24%, supporting the movement of the US dollar ahead of the US NFP jobs report which is the focus today.
On the XAU/USD price chart which measures the value of gold against the US dollar saw yesterday's decline fall below the 1810.00 price support zone and test the 1800.00 level on the RBS (resistance become support) zone.
The movement of gold price below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame gives an early signal for the beginning of a bearish trend.
Although the price rose slightly yesterday after testing the 1800.00 level, continuing on Friday trading the price returned to that level.
The 1800.00 zone becomes an important zone that will determine the direction of further movement of the price after trading these few weeks managed to curb the lower fall. However, will the same situation happen again tonight?
If the price plunges lower below the 1800.00 zone, analysts warn investors to be prepared for a lower fall of gold to levels around 1765.00 and also 1745.00 which were the focus previously.
In fact, a continued decline could hit back at the 1700.00 focus zone.
However, if the 1800.00 zone once again becomes the savior of the price spike again, the price will head back to the 1830.00 resistance zone after the spike past 1810.00.
The next higher price increase will lead to the SBR (support become resistance) zone of 1850.00 focus.
