Last week saw a display of bearish movement patterns for gold trading after failing to maintain an excellent performance on the previous week’s gains.
On the XAU/USD price chart which measures the value of gold against the US dollar has seen pressure for the precious commodity after the price failed to reach the target level of 2000.00.
A little more increase will see the price touch the 2000.00 level, however the price has started making a decline since the beginning of last week up to the lowest level recorded at the weekly close around 1927.00.
This has invited frustration of gold investors who have had to acquiesce in expecting a more severe decline for gold this week.
The US dollar is expected to continue to put pressure on the value of gold in the wake of Federal Reserve (Fed) Chairman Jerome Powell’s positive comments for a more aggressive interest rate hike at next month’s meeting.
Gold price movement remains bearish moving below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame since last week again.
Continuing earlier this week, the price is seen still continuing its decline to the level around 1915.00 entering European session trading.
A further decline in the price is expected to lead to the 1900.00 focus level after the price remains above the zone for 9 weeks.
If the fall in gold prices continues and passes that zone, the next decline is seen to test the 1870.00 zone.
However, if the price of gold manages to jump, the initial resistance for the price is seen in the 1950.00 zone before the rise that passes the MA50 barrier will give a positive indication for a rebound of gold.
Next, investors will re -set the bullish target to the 2000.00 high again to make up for last week’s disappointment.
