It seems that gold trading is seen as a failure to maintain the gains gained from last week’s high inflation readings.
But before the decline, the price spike had reached the resistance zone of 1880.00 which indirectly created the latest record high in 5 months at the New York session yesterday (Tuesday).
On the XAU/USD price chart which measures the value against the USD, the price seems to be only able to ‘poke’ the resistance zone of 1880.00 before returning to decline to reach the RBS (resistance become support) zone of 1850.00.
The fall that was presented has also eliminated the ‘ascending triangle’ pattern made yesterday to pass the support trendline as an early signal to a change in the bearish trend.
Gold trading saw a struggle to soar higher after losing significant traction following the publication of positive US retail sales data early in the New York session.
The rebound in US 10 -year treasury yields is also an aspect that supports the greenback dollar to strengthen and risky market sentiment seems to be more in favor of the king of the currency.
However, the RBS 1850.00 zone is currently being observed to help the price of gold to rise again, which is likely to cause a 'reversal' in the trendline support before continuing to plummet.
The next dive is likely to overtake the RBS zone to further hit the next RBS zone at 1830.00 and will be evaluated by investors in anticipation of clear bearish indications.
But it is also not impossible for the price of gold to surprise with a fierce jump that is expected to reach back to the resistance zone of 1880.00 before flying higher towards the next target.
The ability to soar will be seen testing the resistance zone around 1900.00-1910.00 which is also the highest level ever recorded in early June trading before returning to decline.
