Investors are starting to worry about gold falling this week!
Pressure returned to the yellow metal commodity trade following the re -strengthening of the US dollar in the market yesterday.
On the XAU/USD price chart which measures the value of gold against the US dollar has seen the price decline take place past last week’s lows.
If you look at yesterday's trading, the price of gold has started to decline at the beginning of the Asian session, but managed to hold on until the European session.
Giving a bearish signal for price movement when the resistance level of Moving Average 50 (MA50) on the 1 -hour time frame on the XAU/USD chart restrains the progress of gold to rise higher.
With that, the price of gold finally plummeted until the end of the New York session hitting the level around 1835.00.
The decline did not stop there as the price was seen declining lower in trading that continued today (Wednesday) with the price having reached the level of 1830.00 as of the European session.
The 1830.00 zone is the RBS (resistance become support) zone that is being tested by the price and will give an indication for the further movement of the gold price.
If the zone fails to curb the fall in the price of gold, it is likely that the price will decline lower to the level around 1810.00 before testing the support zone of 1800.00.
But beware if the US dollar's pressure on gold starts to fade ahead of the US NFP jobs report to be published over the weekend could affect changes to the currency's king.
If the price manages to rebound, the price increase is seen to test around the 1850.00 zone and also test the MA50 barrier level.
Passing those levels will give a positive signal for gold to continue rising higher with the target to return to the 1870.00 high and test the resistance zone again.
