Gold commodity trading earlier this week was seen moving flat (Monday) as banks in the United States (US) closed in conjunction with the Juneteenth Independence Day holiday.
The US dollar, which influenced the movement of gold, was seen still moving weak after the results of the FOMC meeting last week even though the Federal Reserve (Fed) had made a 75 basis point increase for interest rates to the latest level of 1.75%.
Seen after the aggressive rise, the US dollar currency which is expected to strengthen failed to continue its upward momentum.
Meanwhile, investors are still wary of the currency's monarchy with the expectation that it will strengthen again as analysts remain optimistic after the Fed became more hawkish following the implementation of the aggressive interest rate hike.
On the XAU/USD price chart which measures the value of gold against the US dollar, the price on Friday was seen making a decline expected in profit taking activity by investors before the price flattened between around 1835.00 and 1846.00 continuing to trade earlier this week.
Monday's trading saw the price hover around below the Moving Average 50 (MA50) support level on the 1 -hour time frame on the XAU/USD chart, indicating a bearish movement signal for the gold price.
Continuing trading today (Tuesday), if the rise in the price of the yellow metal manages to continue past the 1850.00 zone, the resistance zone at 1870.00 will be the next focus for a higher rise.
A further rise in the price that passes the resistance zone will lead to the target level of 1900.00, which is the latest high for the 7 -week trading period for gold after investors assess the change in the bullish trend.
On the other hand, if the rise in gold prices fails to continue this week, the decline in the price that re -passes below the 1830.00 level will expect a more severe fall for gold and the next price focus will be directed to 1810.00 again.
And for the lower decline that is still continuing will be expected to hit the important support zone of 1800.00 while recording the latest 5 -week low.
