Analysts again expect gold trading to move in a bearish trend again after the strengthening of the US dollar previously put pressure on the current value of gold.
The price movement on the XAU/USD chart which measures the value of gold against the US dollar however still sees the price of gold still holding back from continuing to fall lower.
Increasingly risky market sentiment coupled with the latest reported issue that North Korea launched two missiles towards the Japanese sea today.
Market risk-off sentiment also led to increased investor interest in gold. However, the expected more active trading of the US dollar in the New York session is likely to change the situation of price movements.
For trading throughout the week, the price is seen moving in the zone between the resistance level of 1745.00 with the lowest level around 1724.00.
As for the bearish situation, the support level is seen at the level of 1720.00 which supports the rebound of the price on last week’s decline. The lower decline will return to the support level of 1700.00.
If the price manages to make a rise past the resistance level of 1745.00, last week’s high level around 1755.00 will try to be overcome for the bullish trend of the price.
Next, the SBR (support become resistance) zone at 1765.00 will be the focus for investors to assess the price reaction in the zone before the continued rise will be targeted to return to the level of 1800.00.
