Gold trading moved gloomily over the weekend after the bullish pattern displayed following reactions to the results of the FOMC meeting failed to be sustained.
On the XAU/USD price chart which measures the value of gold against the US dollar last week has seen the price plunge to the support level of 1900.00.
Yet after the outcome of the FOMC meeting, the US dollar moved weakly in the market leaving room for gold prices to rise again.
Despite the upside, the price was blocked at the resistance level of 1950.00 before ending trading at the end of last week’s New York session around 1920.00.
Continuing trading at the opening earlier this week, the price is still moving slowly around the close of the price since the Asian session continued into the European session.
Investors started evaluating signals for bearish trend change after the price moved below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame on the XAU/USD chart.
The development of the Russia-Ukraine war crisis will continue to be monitored this week which will affect the current gold movement.
Expectations for the US dollar to strengthen again after this also make gold investors remain cautious and prepared if gold prices decline again.
If the price makes a decline, the support level at 1900.00 will be tested again this week.
If the price manages to break that level, the next focus level at 1870.00 or lower at 1830.00 will return to focus on further decline.
On the other hand, if the price manages to make a jump and break the resistance of 1950.00, the price increase will re -target for the price of gold to reach the level of 2000.00.
Next, the previously reached 2070.00 high will try to be reached for gold to continue challenging the latest high levels of all time recorded.
