Gold trading is still holding back from a lower decline despite signs of a decline on the gold chart last week.
On the XAU/USD price chart which measures the value of gold against the US dollar, the price is seen to have displayed a bearish pattern last week after testing the resistance level at the 1870.00 zone.
However, the decline only reached the level of around 1841.00 before then making a rise again.
The bullish signal was evaluated by gold investors after the price still held above the Moving Average 50 (MA50) support level on the 1 -hour time frame on the XAU/USD chart after the price closed trading in the last session last week around the 1850.00 zone.
Starting trading on the Asian session today, the price displayed a rebound and seen the resistance zone at 1870.00 will return to be the target for price testing.
There was a slight decline in prices at the beginning of the European session, but investors are hoping to see the precious yellow metal continue to slide even higher this week.
A price increase that manages to pass the resistance zone at 1870.00 will slightly relieve investors before expecting a higher rise to lead to the 1900.00 zone.
The price increase to the zone will record the latest highs of gold for a period of 4 weeks.
On the other hand, if this week is not a good week for gold, the price decline is likely to happen again.
Prices falling below the 1850.00 zone and moving past the MA50 support level will give an early signal for a bearish trend change.
The price that made the decline to pass the lowest level last week will then go to around 1830.00 to test the zone that was the focus of prices before.
