The $ 1,830 price zone remains a bulwark for gold trading after last week's price movement still failed to break through.
On the XAU/USD price chart which measures the value of gold against the US dollar, last week being the second week the 1830.00 high still failed to pass the price after the price increase was initially exhibited at the beginning of the week.
Towards the end of the week, the price started to flatten again below the 1830.00 level with the zone around 1815.00 being support from the price making a decline.
The same situation was seen at the market opening earlier this week when the price returned to the upside from the 1815.00 zone at the beginning of the Asian session this morning and tested the Moving Average 50 (MA50) barrier level on the 1 -hour time frame of the price movement on the XAU/USD chart.
Analysts will assess if the price fails to continue rising past the barrier will signal for an impending bearish pattern.
Investors are also beginning to be wary of expectations of a possible strengthening of the US dollar this week after the strengthening was displayed by the king of the currency at the close of trading last week which will also put pressure on gold.
If the price of gold falls lower, the 1815.00 zone will give an indication for a downward movement if the price falls past it.
The continued decline is likely to return to the level of 1800.00 which is an important zone to be tested by the price before heading to the trading support zone in early January around 1790.00.
Yet if the gold price manages to jump past the 1830.00 resistance zone, gold investors are more optimistic to expect a higher rise after 7 weeks.
The higher bullish target will be directed at around 1850.00 or higher towards 1870.00 which is the height zone tested in last November trading.
