Continue the decline again! The value of gold continued to decline heading into this week's trading making investors continue to grieve.
However, this situation was indeed anticipated earlier and investors were ready for the fall of gold since the beginning of the week.
The pressure on gold is coming from the strengthening US dollar which is estimated to continue to drive for a longer period after indications from US inflation data as well as policy tightening measures by the Federal Reserve (Fed).
On the XAU/USD price chart which measures the value of gold against the US dollar has shown a lower decline in Thursday's trading yesterday past the support zone at 1830.00.
The decline that continued in yesterday’s New York session has hit its latest 13 -week low to around 1810.00.
The decline at the beginning of the week below the 1870.00 level has triggered expectations for a lower decline for gold while the price is seen to remain moving below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame as a bearish trend signal.
With expectations by analysts for gold prices to continue to fall, the next price target is at the 1800.00 focus zone.
The last time the price hovered in the zone was around last February trade before the market saw a surge of gold in early March reaching a high of 2000.00.
If the rise in the price of gold can happen again, the height zone can be reached, but requires strong factors supporting gold trading.
Rising prices that pass the 1830.00 level again are seen to re-test the previous focus target levels again as in the 1870.00 zone and further at 1900.00.
