What happened to the gold price movement earlier this week?
Examining the price movement on the XAU/USD chart which measures the value of gold against the US dollar at the opening of trading earlier in the week yesterday, the price is seen starting well with the rise displayed in the Asian session from the level around 1850.00.
The rise in gold prices is still driven by the continued depreciation factor of the US dollar until continuing earlier this week.
However, after the price reached a high level around 1863.00, the price made a decline again in the European session and flattened at 1855.00 until the end of the New York session trading.
Continuing on Tuesday, the price started trading in the Asian session this morning with a decline to the level of 1846.00.
Gold investors began to regain vigilance with bearish trend change signals after the price moved below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame on the XAU/USD chart in the Asian session.
The resumption of price increases is seen testing the MA50 barrier in the European session which will give an indication for further gold price movement.
If the bulls manage to overcome the barrier and continue to be driven to make gains, the target for the next price is to head to the resistance zone at 1870.00 which was also the focus of last week's trading.
Passing the resistance zone will push the price to the high of 1900.00 to record the latest high of 4 weeks.
On the other hand, if the price continues to show a decline which further strengthens the indicators for bearish movement, the price expectation is to return to the RBS zone (resistance become support) at 1830.00.
