The horizontal movement of gold prices lasted until the end of the week, leaving investors anxiously waiting for a clearer direction.
The US dollar, which strengthened until the end of the week, added to the pressure on gold trading throughout the week.
In addition to risky market sentiment, encouraging US economic data also supported the continued strengthening of the US dollar in the market.
Gold trading on Thursday yesterday was more brisk seen in the New York session as the price jumped 200 pips before plunging lower again.
Observing the price movement on the XAU/USD chart which measures the value of gold against the US dollar, yesterday’s price surge reached the resistance level of 1745.00 before plunging back almost touching the support level of 1720.00.
Prices moving below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame make investors nervous for the bearish trend signal.
If the price falls lower below the 1720.00 level, the decline will be pushed up to the support level of 1700.00 again.
However, if the price manages to jump, the resistance level of 1745.00 will be tested again before the continued rise will lead to the SBR zone (support become resistance) 1765.00.
Hopes for the price to rebound up to the 1800.00 level slightly faded after the price showed signs of making a lower decline.
