The fall in gold prices was even harder to contain as investors had to watch the latest drop of gold in Tuesday's trading yesterday to the latest lows surpassing the levels they had hit last week.
Although the strengthening of the US dollar since the beginning of this week is seen as not very aggressive, gold safe-haven assets still failed to attract investors.
Investors are now focusing on the US inflation data that will be published in the New York session soon which is also seen to affect the current trading of gold.
On the XAU/USD price chart which measures the value of gold against the US dollar is seen to have continued the decline to the latest 3 -month low almost touching the focus zone of 1830.00.
At the opening trade earlier in the week investors were getting a signal for a lower decline of gold after the price moved below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame on the XAU/USD chart slipping below the 1870.00 zone.
But continuing with today's trading (Wednesday), there was an early rise in the price of gold that was displayed until the beginning of the European session.
The price increase is seen to test the MA50 resistance level and if the price fails to break it, the price decline will be expected again towards the support zone of 1830.00.
If the 1830.00 support zone also fails to curb the aggressive decline in gold prices to continue the bearish trend, the target is to hit around 1800.00.
On the other hand if a rise in price occurs, the initial resistance at 1870.00 will be tested before investors see a signal for a change in the gold trend again.
The increase that is successfully continued will lead to the previous level of focus, which is at 1900.00.
