Looking at the XAU/USD price chart which measures the value of gold against the USD it seems still unable to stay in the 1800.00 resistance zone after being shaken by some sentiment.
The price movement was seen again brisk at the beginning of the New York session yesterday (Thursday) to climb to the level of 1810.00 but it was kicked back to show a decline to test the level of 1790.00.
But the price trend seems to be rising again to close Thursday's trading session at around 1800.00 before declining more significantly in the Asian session continuing into the European session today (Friday).
The surge has already been influenced by the publication of US Gross Domestic Product (US) data which plunged lower than expected and continued to drive gold prices higher.
However, the rise in gold prices was hampered by a 10 -year rise in US treasury yields that did not react to gloomy economic data to return to 1.60%.
Investors are also expected to take precautionary measures following the close of trading at the end of October which is highly likely to see some profit taking activity.
If the price of gold continues to receive pressure from the USD, the probability of the price can return to hit the RBS zone (resistance become support) 1780.00 which often supports the price spike.
A more significant decline from the zone is expected to see the price move towards the next RBS zone at 1760.00 and will give an early indication for a change in the bearish trend.
Assuming the price manages to re -climb, the resistance zone of 1800.00 will probably be reached first before the price expectation is able to create the latest highs in 7 weeks.
