Surely many gold investors were disappointed when hopes of seeing gold prices soar higher this week were shattered by the sharp fall of the yellow metal yesterday.
On the XAU/USD price chart which measures the value of gold against the US dollar saw the price plunge around 350 pips until the New York market session yesterday.
The price plunged to below the 1800.00 level again after the price managed to hold above the zone for the past week.
The bullish momentum failed to be sustained earlier in the week after investors saw gold jump to its latest high of 1834.00 last Friday following the release of the US NFP jobs report.
The re -decline below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame in yesterday's trading also gave a bearish signal on the XAU/USD chart.
Continuing on today's trading (Wednesday), the price is flat below the 1800.00 level which investors will rate as an important zone determining the direction of the gold price movement further.
With the significant drop displayed, it is likely that the price will continue to decline lower towards the end of the week with the target level seen at 1765.00 and the 1745.00 level which has been concentrated before.
However, it is not impossible for investors to see the price of gold soar again above the 1800.00 zone if market sentiment changes and is in favor of gold.
The 1830.00 resistance zone tested last weekend will be the main resistance that needs to be tested before the higher rise continues towards the 1850.00 focus zone.
