Gold prices were seen moving in the horizontal zone but remained hovering below the $ 1,900 level over the past week.
While market sentiment remains risky, the movement of gold safe-haven assets now continues to be influenced by changes in the value of the US dollar in the market.
On the XAU/USD price chart which measures the value of gold against the US dollar, it can be observed that the 1900.00 zone remains a resistance for the price.
After last week’s FOMC meeting that prompted an early depreciation of the US dollar has seen a surge in gold prices trying to break the 1900.00 resistance in trading on Thursday.
But prices failed to continue rising and plunged back into the 1870.00 focus zone ahead of the United States (US) NFP jobs report.
The bullish pattern was displayed on Friday trading around 200 pips upside and the US NFP report did not give a significant reaction to the movement of gold at the close of trading last week.
Gold prices again signaled a bearish trend with a decline throughout the Asian session at the opening of this week’s trading moving below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame on the XAU/USD chart.
The price has slipped back to the 1870.00 zone with the expectation that the lower decline will continue in the next trading sessions.
For a lower decline, the price support zone around 1850.00 that was reached at the beginning of last week will be tested again.
And the continued decline is seen going to the next focus level around 1830.00 to record the latest 13 -week low.
On the other hand if gold starts a surge this week, passing the 1900.00 zone will re -trigger expectations for a higher rise as a signal of a bullish trend change.
Further price increases will head to the 1950.00 zone before the higher target will return to reach the 2000.00 high again.
