The market is still looking for signals for the bearish trend to continue for the current gold trading.
Gold prices showed a resurgence in trading on Tuesday yesterday but with weak momentum on display.
If you look at the price movement on the XAU / USD chart which measures the value of gold against the US dollar, the price has made a decline in the Asian session yesterday morning continuing the decline of the previous session.
After surpassing the level of 1720.00 and reaching the latest 9-month low around 1707.00, the price shows a reversal of around 300 pips.
Investors' expectations for the price continue to decline with the latest signal for the beginning of a bullish trend after the price crosses above the Moving Average 50 (MA50) barrier level within the 1-hour time frame of the XAU / USD chart.
However, trading on Wednesday showed prices were still declining after a horizontal move in the Asian session followed by a decline at the start of the European session.
The price reduction will test the level of 1720.00 and also the latest low level that was successfully reached yesterday.
It is likely that the price may fall lower towards the focus level of 1700.00 for investors to assess the price reaction in that important zone.
If the price returns to the rise, investors need to pay attention to the resistance levels of 1745.00 and also 1765.00 in the SBR zone (support become resistance).
