Investors had to hold back disappointment when they saw gold commodity trading continue to shrink lower on Wednesday trading yesterday until passing last week's price level.
This situation has been driven by the re-strengthening of the US dollar in the market when the market sentiment changes in favor of the safe-haven currency.
In addition, the focus is also directed to statements by some members of the Federal Reserve (Fed) regarding monetary policy with a still hawkish tone.
Thus, it can be seen that the price movement on the XAU/USD chart, which measures the value of gold against the US dollar, has shown a price drop that penetrated last week's support level at 1640.00.
The decrease until the end of the New York session reached around 1628.00 before a slight decrease occurred at the beginning of the Asian session this morning (Thursday) to the level of 1622.00.
The price remains moving below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the chart to signal a bearish movement that is still ongoing for gold.
There was a rebound at the end of the Asian session a little while ago to around 1635.00 before the price movement flattened back around that area.
Last week's support level of 1640.00 is seen to be a new resistance for the price if the rise continues and the MA50 barrier will also be tested.
A break above that resistance will prompt further upside expectations for gold prices to head back to last week's resistance focus at 1680.00.
As for the expectation of continued decline, the 1615.00 zone will be an important focus that will be tested after the price successfully bounced from the zone during trading at the end of September.
Passing the zone will expect a drop in the price of gold to reach the 1600.00 level.
