Gold prices fell back around $ 30 from last weekend’s high of around $ 1,814 per ounce after the spike exhibited.
Gold failed to hold above the $ 1,800 level it managed to break last Friday before falling back below that level in earlier trading this week.
The mixed market sentiment this week will make the direction of the gold price movement increasingly blurred and investors will remain vigilant waiting for clearer signals.
On the XAU/USD price chart which measures the value of gold against the US dollar yesterday, the rise in the price of gold just touched the level of 1800.00 before plunging back in the New York session to the level of 1785.00.
After falling to the surrounding levels, the movement of gold prices slowed to continue the Asian session this morning (Wednesday).
However, investors remained restless following the indication of a bearish price pattern on the XAU/USD chart following the price moving below the Moving Average 50 (MA50) barrier level in the 1 -hour time frame.
The initial decline in the price is expected to the level around 1780.00 before the price that continues to decline will re -target the support zone at 1760.00.
If the rise in gold price is successfully exhibited, the 1800.00 level will be an important resistance that will be tested again after failing to pass it yesterday.
A successful rise past the zone will give a positive signal for a change in the bullish trend for gold.
The height reached last weekend will be tested first before the rise to higher levels which will continue to the level around 1830.00.
