Gold's move in Wednesday's trading overnight was seen as flatter, failing to extend its early-week gains, but still holding on from shrinking towards the original $1,800 level.
Market sentiment was again considered risky at first, causing investors to switch directions to safer investors, where high return markets such as stocks again showed declines.
Safe-haven currencies including the US dollar are showing an early recovery from the losses experienced earlier in the week, but this opportunity is seen as failing to be exploited by gold.
On the XAU/USD price chart which measures the value of gold versus the US dollar, the price has shown a decline from the 1830.00 zone after rising at the start of a successful week to that zone.
However, failing to give a clearer signal of a bullish trend change, the price reverted back and flattened above the 1810.00 zone on Thursday's trading overnight.
The price is also seen continuing to move below the 50 Moving Average (MA50) barrier on the 1 hour timeframe on the XAU/USD chart which signals a downward trend.
If the decline in gold prices continues towards the end of the week, the support zone of 1800.00 will be tested again and is expected to become a support zone to stem the further fall of gold.
However, if the price decline continues, the price breaking through the 1800.00 zone is seen to be heading towards the 1760.00 zone to record gold's latest low for 2022 trading.
On the other hand, if gold succeeds in soaring high above the 1830.00 zone, investors are more optimistic in predicting a bullish movement in gold.
Rising higher the price is seen to be testing the resistance zone around 1850.00 before a continued advance will also head towards highs around 1870.00.
