Gold commodity trading managed to make gains at the end of last week's trading session but failed to maintain the strengthening momentum at the beginning of this week.
US consumer sentiment survey data published in the New York session last Friday which was stronger than expected was seen as a strengthening factor for the US dollar as last week's trading drew to a close.
Next, it is seen that investors are looking forward to the release of United States (US) retail sales data and also the minutes of the FOMC meeting to assess the movement of the US dollar this week.
Gold commodities rose higher driven by the dollar index and US 10-year bond yields which have supported the rise following reduced expectations for the Federal Reserve (Fed) to act aggressively in the implementation of its interest rate hikes.
However, slowing US inflation in July has thwarted gold's move to strengthen higher.
Observing the price movement on the XAU/USD chart which measures the value of gold against the US dollar, it can be seen that the gold price is still maintaining a horizontal movement momentum as at the weekend of last week's trading session.
On Friday, the price of gold was seen to successfully make a jump to test the barrier level of 1800.00 price again, but as tried in the previous days, the level still failed to break through.
Following on from the opening of trading earlier this week (Monday), the price which started trading around the resistance level of 1800.00 then showed a decline again throughout the Asian session continuing into the European session.
The price falling below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the XAU/USD chart has indicated a change in the bearish price trend for movement earlier this week.
The price has also dropped past 1785.00 with expectations for further declines to continue in the next session to overcome last week's lows.
A further decline would expect the price to shrink to the 1760.00 support zone to record a recent 2-week low.
However, if the price succeeds in penetrating the zone, investors will focus on the RBS (resistance become support) zone of 1740.00 if the decline continues.
On the other hand, if gold manages to make a comeback, the price is likely to return towards the 1800.00 level to test the important resistance zone after all last week the price failed to break through it.
If the price manages to make an improvement and break through the 1800.00 resistance zone, the next concentration levels seen will be reached by the price around 1815.00 and 1830.00 recording the latest 7-week high level.
