Resuming trading on Wednesday yesterday, gold was declining after the move in the Asian session flat at the $ 1,800 resistance level.
The strengthening of the US dollar this week re -erased the gains made by gold in the previous week’s trading after last Friday’s surge had reached a high of $ 1,834.
On the XAU/USD price chart which measures the value of gold against the US dollar, the price has been declining since the beginning of the week to hit this week’s lows in yesterday’s New York session around 1783.00 before moving slowly to the end of the session above that level.
Continuing the Asian session this morning (Thursday), the price is still moving flat before a rise is seen at the beginning of the European session for the price to head back to the resistance zone of 1800.00.
The Moving Average 50 (MA50) barrier level on the 1 -hour time frame will also be tested to signal the direction of further gold price movement.
If the rise fails to continue, the price will continue a series of lower price declines with the expected support level at 1765.00 and also the 1745.00 level will be among the price attraction zones.
However, if the price manages to jump above the 1800.00 level and also passes the 1800.00 barrier, investors will see it as an early signal of a bullish trend for gold trading.
The price increase will test the focus level around 1810.00 first before heading to the 1830.00 resistance zone which was tested last weekend.
A higher rise beyond the zone will record the latest 3 -month high with the target level being at the 1850.00 price zone.
