Gold commodity trading which is affected by the current movement of the US dollar currency is seen to be still gloomy with the downward pattern displayed on the price chart.
Although the strengthening momentum of the US dollar is seen to have subsided, it still shows a positive strengthening, just less aggressive than last week.
Thus, it can be seen that gold trading 'breathed' a little yesterday, but did not manage to hold back the further demand for gold before the price of gold continued to decline in the New York session yesterday until trading today (Wednesday).
On the XAU/USD price chart, which measures the value of gold against the US dollar, the price is seen to resume its decline after the increase displayed since yesterday's Asian session was blocked at the 1640.00 zone resistance.
Around that also see the price reacting to the Moving Average 50 (MA50) level on the 1-hour time frame on the XAU/USD chart. Failing to cross the barrier shows that gold is still in a bearish trend.
The decline continued from the 1640.00 zone until it was seen to pass the lowest level reached at the beginning of the week around 1621.00 with the price movement in the European session reaching around 1615.00.
With the bearish pattern displayed, analysts expect the price drop to continue towards around 1600.00.
Focusing on that level, the price of gold will continue to record the latest 2-year low.
However, if the price makes another rally, the resistance at the 1640.00 zone will be tested again after failing to break through it yesterday.
Successfully crossing the barrier and also breaking through the MA50, will signal a bullish trend change for gold with the next target to increase towards the 1657.00 zone.
Next, the continued higher increase will lead to the resistance zone that was the focus of last week which is at 1680.00.
