The greenback dollar remained dominant at the end of September and has pushed gold prices to continue declining up to the 1720.00 support zone.
The rise in the US dollar driven by current market sentiment as well as the rise in US 10 -year bond yields have driven the movement of gold prices to cater for the lower steep.
Apart from that, the price of gold was also driven by the news that the Federal Reserve (Fed) will implement measures to reduce bond purchases (tapering) in the near future which will return to the focus of investors.
On the XAU/USD price chart which measures the value of gold against the US dollar, the price appears to have passed the 1740.00 level to complete the descending triangle pattern if viewed on the 1 hour timeframe.
The price movement is seen slightly increasing to re -test the SBR zone (support become resistance) 1740.00 before making a reversal and re -decline to test the support zone 1720.00.
Entering the European session today (Thursday), the price is seen moving a little slower to trade at the 1732.00 level in anticipation of a more drastic movement in tonight’s New York session.
Analysts expect that gold price is able to hit the key support zone of 1700.00 which is a strong zone in re -supporting the price surge.
If the gold price moves again, the resistance in the latest SBR zone around 1740.00 will be tested again before it is expected to show a more 'violent' rise.
A higher upside is likely to support the price of gold to move towards the SBR 1760.00 zone to signal a trend change
