Following the movement of gold price which is still hovering above the level of $ 1,745 since last week continued earlier this week, can still breathe a sigh of relief.
However, current market sentiment which is seen again injecting a strengthening against the US dollar has made investors wary of the possibility of a fall in gold prices this week.
On the XAU/USD price chart which measures the value of gold against the US dollar, Monday's trading still showed the 1745.00 level remained supporting the lower price fall after the price increase at the market opening earlier in the week failed to continue.
After recording a price increase in the Asian session yesterday to the SBR (support become resistance) zone of 1765.00, the price declined again in the European session testing the 1745.00 level.
Continuing at the beginning of the Asian session this morning (Tuesday), the price moved horizontally around 1750.00 before showing a decline at the beginning of the European session testing the 1745.00 support.
With the resurgence displayed the US dollar is likely to invite back expectations for gold prices to decline lower after several weeks of prices holding above the zone.
If the price plunges lower, analysts ’expectations are rising to see the gold price return to the previous key support zone of 1700.00.
The last time the price tested that level was during the gold price plunge in early August last year when the United States (US) NFP jobs report was published with encouraging readings.
If the gold price makes a rebound again, the resistance in the SBR 1765.00 zone will be tested first before continuing the rise towards the SBR 1785.00 zone on the bullish trend movement.
Next, the price can reach back to the level of 1800.00 if the rise continues after a few weeks the price falls below that level.
