Gold trading continued to lose more severely towards the end of the week as it was affected by the re -strengthening of the US dollar in the market.
Following the market's positive reaction to the hawkish FOMC meeting, the US dollar continued to be supported by the release of US economic growth data for the fourth quarter of 2021 published in the New York session yesterday.
Thus, gold investors had to witness a lower fall in the value of gold as shown on the XAU/USD price chart which measures the value of gold against the US dollar.
After this week’s rise managed to reach the 1850.00 zone, the price has made a decline of around $ 60 or 600 pips up to the European session this afternoon (Friday).
Investors had to acquiesce to expect a lower decline in the price of gold after the decline in yesterday’s New York session had passed the 1800.00 level which failed to function as a support level.
In fact, a weak rise at the end of the New York session from the lowest level reached around 1792.00 also failed to re -pass the 1800.00 level which is now a resistance for the price.
The decline was seen again continuing into the European session and it is likely that investors will see more aggressive declines in the New York session before closing trading this week.
The nearest support zone around 1785.00 will be tested and the continued lower decline will lead to the previous focus support zone around 1760.00.
However, if the bulls manage to cross the 1800.00 level again, the Moving Average 50 (MA50) barrier level on the 1 -hour time frame will try to be broken to signal a change in the bullish trend again.
The price increase will retest the important zones at 1810.00 and 1830.00 before re -reaching the resistance zone of 1850.00.
