Attempts for gold to trade above the $ 1,800 level still failed after last Friday’s price hike failed to last much longer.
On the XAU/USD price chart which measures the value of gold against the US dollar saw the price decline again below the 1800.00 level last Friday after testing the resistance zone.
The slow price movement continued at the beginning of this week’s trading hovering above last week’s support level around 1785.00.
Also giving a bearish signal when the price that made a rise in the Asian session this morning failed to pass the Moving Average 50 (MA50) barrier on the 1 -hour time frame before declining again at the beginning of the European session.
Expectations for the US dollar to strengthen earlier in the week as investors expect the Federal Reserve (Fed) to exit policy easing, adding to the pressure on gold trading.
A lower decline in the bearish trend movement will lead to the previous price focus levels at the support of 1765.00 before the continued decline leads to the level of 1745.00.
On the other hand, investors will breathe a sigh of relief if the gold price manages to rebound past the 1800.00 resistance for an early signal of a bullish trend change.
Among the resistance zones that gold will meet is at 1810.00 before testing the 1830.00 resistance reached in early September.
Passing the following obstacles will push the price to reach the focus zone at the height of 1850.00.
