Not enough to surprise last weekend, gold trading at the beginning of the week continued to rock the market with depreciation of up to over $ 100!
Notice the price movement displayed on the XAU/USD chart which measures the value of gold against the US dollar.
Following the encouraging US NFP jobs report and pushing for the strengthening of the US dollar last Friday, gold prices have plummeted from the 1800.00 price zone to the 1765.00 focus zone.
Starting early trading of the Asian session this morning below the 1765.00 level the price continued to plunge over 70 pips almost touching the 1680.00 level.
However, the decline did not last long before the price began to rebound above the 1700.00 level to pass the 1745.00 focus level continuing until the European market session.
Analysts have started to see the tendency of gold price to continue the price movement in a bearish trend this week after plunging back below the 1800.00 level.
The price rebound is seen to be quite drastic, however the gold price is still expected to resume the decline in the next session retesting the 1700.00 support zone.
The zone was previously the focus during March's trade which managed to support the price to make a rebound, as well as the situation that occurred at the beginning of the Asian session this morning.
A successful continued decline beyond the 1680.00 level will record the latest lows for trading this year.
However, if the price increase continues, the focus zone at 1765.00 should be given attention which is also an area of price attraction.
A higher rise could retest the resistance at 1800.00, however requires a stronger factor to return giving a bullish signal again for gold trading.
