Gold commodities were also scratched at the end of last week's trade after investors navigated a turbulent week faced with the results of several key central bank meetings that took place simultaneously on the same day in addition to the surprise Japanese government intervention in the market.
The movement of the US dollar mixed with the change in the price direction exhibited has also affected the movement of the current value of gold.
Evaluating the price movement on the XAU/USD chart which measures the value of gold against the US dollar, it can be seen that the horizontal movement of the price since the beginning of last week then signaled to continue the previous bearish pattern at the close of the week's trading.
The price drop at the end of the session saw the price support zone for gold around 1655.00 successfully penetrated before the price reached the concentration level of 1640.00 at the close of last week.
Opening the trade earlier this week in the Asian session, the price showed a lower drop below the 1640.00 level to reach around 1627.00 before showing a rebound in price continuing into the early trading of the European session.
However, the price is still seen to be in a bearish trend with movement below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the XAU/USD chart.
The price increase exhibited in the European session is expected to test the 1655.00 zone which will form the latest SBR (support become resistance) zone.
And if the price manages to break through that zone and also break through the MA50 barrier, this will be an early indication for the value of gold to jump higher.
The continued increase will lead to around 1680.00 to test the resistance zone in the past week.
However, if the bearish pattern of prices continues, the decline in prices will surpass the latest lows recorded in the Asian session this morning.
A further drop in the price of gold is likely to reach around 1600.00.
