Throughout the week, there were interesting movements displayed by gold commodity trading, but overall the price was still seen hovering in a flat zone.
Due to the movement of the US dollar currency, which is seen to be brisk with several changes in direction, also affects the current gold value fluctuation.
This can be observed on the XAU/USD price chart which measures the value of gold against the US dollar throughout the week.
There was an aggressive movement in the price of gold during the reaction of the last FOMC meeting with an increase in the price that jumped to a height of 1688.00 and then plunged back to the support zone of 1655.00.
On Thursday yesterday, the price of gold was also seen showing a rebound when the US dollar weakened briefly after the shock of Japan's intervention in the financial market, saw the price test the resistance zone at 1680.00 but failed to extend the rise to higher levels.
The decline in gold happened again today (Friday) back to the 1655.00 support zone in the European session with the strengthening of the US dollar being exhibited again.
The bearish signal of gold price movement is evaluated following the price moving below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the XAU/USD chart.
A further decline is expected to break through the current support zone to record the latest 2-year low for gold with a target of around 1640.00.
But be alert in the event of an increase in the price of gold at the end of this week with the possibility of being affected by profit-taking activities or other factors.
The price can bounce back to test the 1680.00 resistance again at the SBR (support become resistance) zone.
And if it passes the zone, the more bullish gold price movement will go to the previous focus zone at 1700.00 and then to the higher 1720.00 zone.
