Gold trading has not yet been able to put a smile on the face of investors this week with prices increasingly showing a decline today (Tuesday).
Making investors nervous when market analysts began to expect the US dollar to strengthen after the United States (US) debt ceiling agreement was reached.
If the US dollar is strong, the price of gold will be pushed down to a lower level.
It can be observed on the XAU/USD chart that measures the value of gold against the US dollar, the price moved horizontally below the 1950.00 level throughout Monday yesterday as most banks were still on holiday.
Failing to break through the 1950.00 level, the price also remains hovering below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the XAU/USD chart, expecting the bearish trend to continue.
Towards the end of the Asian session just now, the price of gold is seen to be moving lower past the level reached last week, and has recorded the latest low around 1932.00.
However, there was a slight bounce at the beginning of the European session, expecting the MA50 barrier to be tested in addition to the 1950.00 level, which will also be the focus.
If the price surges through the barriers, investors will see it as a positive indication for the price of gold to rise again.
The expectation is to retest the next resistance zone at the height of 1980.00 first before the rise continues towards the previous concentration level of 2000.00.
However, if the strong US dollar pressures the price of gold to fall lower, the price will continue the previous bearish pattern and record the latest 11-week low.
The target is towards the 1900.00 zone where the price was last in mid-March trading.
