The XAU/USD price movement chart that measures the value of gold against the USD seems to have failed to climb higher after gold prices plunged back more than 350 pips at the beginning of the New York session last Friday.
The dive has indirectly once again reached the RBS (resistance become support) zone of 1780.00 before soaring at the end of the session to continue trading today.
Nevertheless, the price of gold was seen starting a slightly flat movement at the opening of Monday trading in the Asian session and saw the price is almost testing the 1800.00 focus level.
The market seems to have received a shock from recent concerns about the discovery of the Omicron variant found in South Africa as well as resulting in most markets being slightly affected.
Gold trading was also destroyed by declining demand due to the spread of the Covid-19 outbreak nationwide, making investors more eager to increase cash holdings.
However, the 10 -year decline in US treasury yields, which fell below 1.50%, has given support to gold prices to show a slight improvement.
Being the main focus of investors will be observed in the SBR zone (support become resistance) 1800.00 to be broken to negate the bearish pattern and continue to climb to higher peaks.
The next climb will show the expectation to test to the SBR 1830.00 zone which will indirectly be able to move to the SBR 1850.00 zone to display a bullish trend change signal.
While the RBS 1780.00 zone is likely to be tested again after the price still fails to break the zone before the lower capability will reach the 1760.00 support zone.
