Concerns over movement restrictions in Shanghai following a resurgence of coronavirus outbreaks in China last week did not appear to have had an impact on rising prices for gold trading.
On the other hand, the value of the yellow precious metal showed a decline at the market opening for the last week of March.
Market volatility that gave the US dollar an advantage in addition to rising US 10 -year treasury yields were among the factors driving gold’s decline earlier this week.
On the XAU/USD price chart which measures the value of gold against the US dollar has seen bearish movement signals following the decline that has started since the beginning of the Asian session yesterday again pushing the price to move below the Moving Average 50 (MA50) barrier level in the 1 hour time frame.
The decline in the price of gold until the end of the New York session had reached the level of around 1920.00 before the flat price in the zone continued in today's trading.
With the bearish pattern that has been displayed, investors will expect the price decline to test the support level of 1900.00.
If the level fails to curb further price declines, the next focus level is seen at 1870.00 for the test price.
However, if there is a price increase, the level of 1950.00 will be the initial resistance that is tested before the price that passes the MA50 barrier will give an early signal for a change in trend.
Furthermore, the SBR (support become resistance) zone of 1970.00 will be the focus for the price to test last week's resistance.
Higher gains will re -target the 2000.00 focus level to re -boost investor confidence for the next gold movement.
