Trading earlier in the week saw gold commodities positive as the US dollar remained weak while investors were wary of market movements expected to be gloomy today (Monday) as US banks closed in conjunction with the Juneteenth Independence Day holiday.
The US dollar moved flat after closing higher at the end of last week's trading on expectations of profit -taking after investors saw a decline in the currency's monarchy during the outcome of the FOMC meeting.
The depreciation of the US dollar last week was seen as giving room for gold to show appreciation, but the momentum failed to be maintained following the strengthening of the US dollar last Friday.
However, investors are still cautious for the movement of the US dollar as market analysts still expect that the US dollar may rebound with signals from the hawkish Fed after implementing the aggressive interest rate hike.
On the XAU/USD price chart which measures the value of gold against the US dollar, the price is seen to have exhibited a decline again last Friday after a surge on Thursday saw the price reach a high of around 1857.00.
However, the decline in the price until the last trading session last week again hit back around the level of 1835.00 triggering expectations whether the price will return to signal for a bearish trend.
Trading earlier this week saw the price hover around the Moving Average 50 (MA50) support level on the 1 -hour time frame and the price has yet to show a decline below that level.
If the rise in gold prices manages to continue past the 1850.00 zone earlier this week, the resistance zone at 1870.00 will be the next focus to be tested after trading in the previous few weeks failed to break the zone.
A higher rise that passes the resistance zone will record the latest 7 -week high for gold with a further target to head to the 1900.00 level.
On the other hand, if the rise fails to continue and the price falls below the 1830.00 level, the price focus will be directed to 1810.00 again before the lower decline is expected to reach the important support zone at 1800.00.
The drop that reaches the 1800.00 zone will record the latest 5 -week low for gold trading.
