Anxiety returned to gold investors as hopes of seeing the yellow metal begin to gloom after depreciation earlier in the week.
The XAU/USD price chart, which measures the value of gold against the US dollar last week, showed convincing action with a jump of up to $ 60 above the 1800.00 level.
However, in Monday's trading, the price fell back below the 1800.00 level and closed the New York session around the 1790.00 level.
The decline has also signaled for bearish movement after the price re -moved below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame.
Trading on Tuesday was flatter from the Asian session continuing to the European session around the 1790.00 level while investors are still assessing current market sentiment and the factors influencing price movements.
The re -strengthening of the US dollar is likely to put pressure on the value of gold in the market and push for a lower decline on the XAU/USD chart.
The lower declining price will first test the 1780.00 zone before the decline continues until it returns to the 1760.00 support zone during last week’s price spike.
For bullish expectations, the resistance of 1800.00 will be tested again to give hope again for the prospect of strengthening gold.
Passing the barrier will push the expected rise to the highs reached last week at 1814.00 before continuing higher to the 1830.00 level.
