After last week’s FOMC meeting, investors saw gold trading rebound after displaying a decline earlier.
However, the rally stuck to the $ 1,950 level before flattening below that level until trading resumed today as observed on the XAU/USD price chart which measures the value of gold against the US dollar.
Although still unclear, there are signs for the price to move bearish after this following the movement below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the XAU/USD chart.
The movement of gold is still driven by the US dollar failing to determine a clear direction while the war crisis between Russia and Ukraine is still being monitored.
Several factors seen to support the re -strengthening of the US dollar such as the surge in US treasury yields to new highs, could put pressure on gold prices to decline lower.
The decline is seen to test the support level at 1900.00 after the level managed to curb the lower price fall in last week's trading.
If the decline exceeds that level, the next focus level that is seen to be tested is at 1870.00 before continuing the decline towards the lower 1830.00.
However, beware if the price suddenly makes a surprise with a spike after a long horizontal, the price increase will test the resistance of 1950.00 before continuing to rise to higher levels.
Further price increases will target to reach the 2000.00 focus level again after the price declined from that level in the previous week's trading.
