There was a slight increase in the price of gold at the beginning of the European session today after the bearish movement in the Asian session continued the bearish pattern at the end of last week.
On the XAU/USD chart which measures the value of gold against the US dollar, the price is seen to have touched the high of 1950.00 before declining again over the weekend.
There was no significant movement in prices after the US NFP employment data report was published following a relatively mixed reading.
The US dollar weakened slightly and pushed gold prices down, but on weak momentum.
An early signal for a bearish trend movement is seen after the price moves below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame on the XAU/USD chart.
The bearish movement of gold price continued in the Asian session this morning but in the European session, the price slightly increased testing the MA50 barrier.
If the price fails to break the barrier and make a further decline in the support level at the 1900.00 zone will be tested again this week.
The support zone has managed to curb the fall in lower prices last week and also mid -March.
If the price manages to break lower, the expectation of continued decline will lead to the focus level of 1870.00 or lower at 1850.00.
On the other hand if the price rise continues into the New York session, the resistance at 1950.00 will be tested for the price to overcome last week’s high.
The continued rise will test the SBR zone (support become resistance) at 1970.00 before the gold price will return to target the high at 2000.00.
