Gold traded gloomy last week after several attempts to raise the price stuck at the $1,680 level.
The US dollar, which has been trading well these past few weeks, has been a driving factor for pressure on current trading of the yellow metal asset.
After the price pattern change in your trade last October, gold continued to move in a bearish trend last week.
On the XAU/USD price chart which measures the value of gold against the US dollar, it can be observed that the price decreased at the end of last week reaching the level of 1640.00.
However, the price of gold did not drop below the RBS (resistance become support) zone at the opening of the market earlier this week when the pattern of rising prices began to appear starting from the Asian session.
The price increase is seen to test the Moving Average 50 (MA50) barrier on the 1-hour time frame on the XAU/USD chart which is a marker of the bearish trend still continuing.
If gold continues its decline this week, the RBS 1640.00 zone will be tested and will be breached to record a new 3-week low.
The extended decline is expected to reach the 1615.00 focus zone that was tested at the end of September before the market saw a price rebound.
On the other hand if the price makes a rally past the MA50 barrier, the expected change in the price trend will prompt a rise that tested last week's resistance at 1680.00.
An increase that successfully breaks through the resistance will expect the concentration zone at 1700.00 to be tested before the continued increase will lead to the 1720.00 resistance zone.
