Gold trading in the market started to slow again after drastic price movements were exhibited at the end of last week connecting to the beginning of the market opening this week.
After prices plunged following market reaction to the US NFP jobs report last Friday, gold continued to surprise at the opening of the Asian session on Monday morning as it ‘dived’ deeper below the $ 1,700 price level.
However, soon after the plunge, the price of gold bullion showed a recovery. While the price increase is not very pleasing to investors, it does provide some temporary relief.
The XAU/USD price chart, which measures the value of gold against the US dollar, saw the price rebound from the 1700.00 level to the 1750.00 price zone on Monday.
However, price movements began to show a weak and flat decline in Tuesday's trading while investors waited for the US inflation data which is also the central bank's reference in setting monetary policy.
On the 1 -hour time frame of the price movement on the XAU/USD chart, the price is seen testing the Moving Average 50 (MA50) barrier level to give a signal for the next movement.
If the level continues to prevent the price from rising, it is likely that the decline will resume towards the support zone 1700.00-1680.00.
Yet if the price still tries to rise again, focus zones like 1745.00 and 1765.00 will return to being price attractions to test.
A higher rise will signal a resumption of bullish trend for gold trading with the target expectation heading back to the SBR (support become resistance) zone of 1800.00.
