The concern of investors continues in this new week with the question of whether the price of gold will be able to survive rather than falling lower?
Uncertainty has continued to plague trading in recent weeks with market direction still unclear as the Federal Reserve (Fed) appears to have a mixed outlook.
Now, the market will look forward to the release of United States (US) inflation data on Tuesday to get a clearer picture of monetary policy setting by the Fed.
The XAU/USD price chart which measures the value of gold against the US dollar last week saw prices drop lower at the end of the week.
The lowest level reached was around 1853.00, after reaching the previous high around 1890.00.
If observed, the price has moved below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the XAU/USD chart, signaling a bearish movement for gold prices.
Resistance is seen at 1870.00 where trading continued earlier this week is still hovering below that zone.
A further decline is possible with prices expected to break past the lows hit last week.
A move lower will mark a recent 6-week low with a target to head towards the 1830.00 focus.
However, if the price manages to make an increase beyond the 1870.00 zone and also break through the MA50 barrier, this will give a good sign for investors.
The price of gold can be expected to rise again to reach the 1900.00 zone target that it failed to reach last week.
After passing that level, the price will be retargeted to the previous resistance zone at 1950.00.
