Gold commodity trading continued to move in a bearish trend until the close of last week's trading session, as investors' views shifted to expectations for the Federal Reserve (Fed) to continue aggressive interest rate hikes against the dovish FOMC minute assessment.
The tightening of monetary policy needs to continue to curb the increase in inflation that has made the US dollar rise while pushing down the value of the yellow metal in the market.
Gold investors wary of the movement of the US dollar this week will be watching Fed Chairman Jerome Powell's speech at the annual symposium in Jackson Hole, Wyoming for any signal on the central bank's further monetary policy setting.
Also affecting the current movement of gold, the dollar index and US 10-year bond yields also strengthened, seen adding pressure to gold commodity trading to trigger a rebound.
Assessing the price movement on the XAU/USD chart which measures the value of gold against the US dollar, the price is seen to maintain a declining pattern from the beginning of the trading opening at the beginning of the week until the last session last week.
The price of gold started a decline from the resistance level of 1800.00 until it crossed the support level at 1760.00 and recorded a weekly low around 1745.00 as the trade closed.
The price that remains moving below the barrier level of the Moving Average 50 (MA50) on the 1-hour time frame on the XAU/USD chart continues to signal to investors for the continued bearish trend movement until it continues in the early trading of this week.
The decline continued into the European session this afternoon to a level of around 1735.00 as of 4.30pm for the price to record the latest 4-week low.
If the price continues to decline, a further drop in price is expected to reach the 1720.00 zone, testing the latest support level and recording the latest low for gold.
On the other hand, if the price of gold succeeds in increasing again, the MA50 barrier level will be tested first before the price tests the price resistance zone of SBR (support become resistance) 1760.00 for investors to determine whether a change in the bullish trend will occur.
The next price increase is seen to retest the SBR 1780.00 zone which was a resistance in last week's movement before the continued higher increase will lead back to the 1800.00 concentration level.
