Gold trading last weekend rose higher after a significant price drop on Thursday to a $ 50 drop in 1 day.
The pressure on gold was driven by the strengthening factor of the US dollar following US retail sales data recording a surge reversing expectations for policy tightening by the Federal Reserve (Fed) at the FOMC meeting this week.
If you look at the XAU/USD price chart which measures the value of gold against the US dollar, last Friday's bullish attempt was blocked at the 1765.00 zone with the weekly support level seen at 1745.00.
The 1745.00 support level touched at last week’s price plunge was tested in early trading this week as far as today’s European session (Monday).
The price movement is still below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame for a bearish signal to investors.
The lower decline is expected to pass the support level of 1745.00 and target the previous price focus zone of 1700.00 zone.
Yet if the price manages to rebound from the 1745.00 zone and passes the 1765.00 resistance tested last week, analysts will see it as an early signal of a bullish trend change when the price also passes the MA50 barrier.
The price increase will return to the previous price 'magnetic' zone at 1800.00 which will be a resistance for the price to continue to rise higher.
The FOMC meeting early Thursday morning will drive the direction of a clearer price movement for gold.
