The scarcity for gold prices jumped high in early week trading in real disappointment for the breeders if the trend still shows a decline for the value of the yellow metal.
In the XAU / USD price chart, which measures the value of gold against the US dollar at the opening of trading this week, it can be seen in the Asian session last night that the price increased almost to a high of 1760.00 after falling gold prices broke 1720.00 last week.
However, after testing the SBR (support become resistance) zone, prices failed to continue their gains before making the original decline in the European session to continue to the New York session to the original 1720.00 support level.
The real US dollar perpetuated its consolidation momentum since last week and put pressure on gold trading during this period.
To make matters worse for investors if continued trading in today's Asian session sees prices drop lower than before 1720.00.
However, the decline in prices broke around the 1707.00 level before returning to the original 1720.00 mark in the European session.
The decline also recorded the latest low face of gold prices in 9 months.
The decline in the price of gold and gold is expected to be continued up to 1700.00. Investors will be waiting for a price reaction on that surrounding face which is the RBS (resistance become support) zone.
If the price is successful in making an increase too, the previous obstacles, such as 1745.00 and the SBR 1765.00 zone, will be the original foundation.
Monitor current market sentiment as well as movements of the US dollar in the market that affect the value of gold during this period.
