Gold continued to suffer losses throughout the week with yesterday's drop in Wednesday's trade breaking past the important $1,720 level.
Gold continues to experience pressure due to the strengthening of the US dollar since the end of last week after Federal Reserve (Fed) Chairman Jerome Powell stated that the central bank will continue aggressive policy tightening.
Even so, the US dollar in the New York session yesterday was seen to slow down the previously strengthening momentum as the United States (US) private sector employment data was published bleakly giving a negative signal for the NFP data at the end of the week.
However, gold is seen to still fail to take the opportunity to reduce the losses experienced before, instead continuing the continuous depreciation in the Asian trading session this Thursday morning.
Examining the movement on the XAU/USD price chart which measures the value of gold against the US dollar, the price is seen to have passed the support level at 1720.00 on Wednesday yesterday, extending the decline to around 1710.00 before rebounding to 1720.00.
The decline continued again from the 1720.00 zone in the New York session yesterday until it continued into the Asian session this morning, recording the latest lowest level reaching 1702.00.
The price movement still shows a bearish trend movement signal where the increase remains blocked by the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the XAU/USD chart throughout this week.
The lower decline if continued will pass the 1700.00 zone if there is no change in the current market sentiment which remains putting pressure on gold assets.
The price of gold is seen to reach the latest support level at 1680.00 to record the latest 6-week low.
The level is also a support zone for the price that successfully rebounded the price of gold on the decline displayed last July.
However, if the price of gold manages to rise again, the 1720.00 level will be the initial resistance that will be tested before the price that crosses the MA50 barrier becomes the expected initial trigger for a change in the price trend.
The continued increase is seen to lead up to the resistance zone of 1760.00 after passing the concentration zone at around 1740.00 first.
