The gold commodity ended last week's trading with a dismal overall performance as the yellow metal continued to experience depreciation.
With expectations for the Federal Reserve (Fed) to continue aggressive interest rate hikes, it is likely to have a strengthening effect on the US dollar and put pressure on gold to rise again.
Examining the price movement on the XAU/USD chart which measures the value of gold against the US dollar, the price has made a decline reaching the level of 1655.00 but managed to close the trade in the last session around the level of 1680.00 which is now the latest resistance for the price.
Previously, the 1680.00 level was the price support zone that was tested last July, but it was successfully broken through and recorded the latest lowest level for gold since April 2020.
Continuing the trading at the market opening earlier this week, the price of gold started trading at the 1680.00 level and made a decline until entering the European session.
Failure to pass the 1680.00 resistance and also blocked by the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the XAU/USD chart remains a signal for the bearish trend movement to continue this week.
The drop in gold prices which is expected to continue this week is seen to be heading towards the latest concentration level around 1640.00 after overcoming the lowest level reached last week.
But if the US dollar moves weak this week and gives room for gold to rise again, resistance at 1680.00 will be an early target to test.
Successfully making a rise past that resistance will push the price of gold to test some concentration zones such as 1700.00 or the previous resistance zone around 1720.00.
Investors will be awaiting the results of the FOMC meeting heading into the end of the week which is expected to have a significant impact on the current price of gold.
