Despite pressure from the strengthening US dollar after last week's FOMC meeting, gold trading still held above the $ 1,745 zone which is a support zone for gold prices.
Market sentiment which saw a slight recovery over the weekend failed to support the rise in gold prices which lost traction as a safe-haven asset, and saw price movements more driven by changes in the value of the US dollar in the market.
On the XAU/USD price chart which measures the value of gold against the US dollar, investors have seen the decline in the price of gold has not yet managed to pass the 1745.00 support zone which was tested 2 weeks in a row.
After ending trading around the support zone at the end of last week, the price started trading this week with an early surge in the Asian session.
However, the rise was blocked in the SBR (support become resistance) zone of 1765.00 before the decline was re -displayed in the European session.
Support 1745.00 will once again be tested to signal further gold price movement.
If the lower decline continues past the support, a clearer bearish trend movement of the price will be seen heading to the previous focus support zone at 1700.00.
However, if the 1745.00 support still manages to curb the fall in gold prices this week, the rebound will focus on the previous resistance levels.
After passing the SBR 1765.00 zone, the next rise will test the SBR 1785.00 zone which was the weekly resistance of the price on last week's rise.
The next higher rise will return to the previous ‘magnetic’ zone of the gold price, which is in the 1800.00 zone for investors to assess the reaction of the gold price in that zone.
