Expectations for the Federal Reserve (Fed) to remain on the path of monetary policy tightening have had the effect of continued depreciation of gold.
Gold has experienced a decline for 3 weeks in a row where the decline continued until the end of the week.
After the economic data of the United States (US) was published strongly, the Fed was seen to have difficulty in continuing to slow down the policy and this made the US dollar strengthen again while gold was depressed.
On the XAU/USD price chart which measures the value of gold against the US dollar, the price continued to be driven low until today (Friday) saw the support level of 1830.00 successfully breached.
As far as the European session is concerned, the price has dropped to around 1820.00 and could possibly fall lower in the last session.
The price remains moving in a bearish trend with the Moving Average 50 (MA50) barrier on the 1-hour time frame on the XAU/USD chart preventing the rise in gold prices.
For the expected further decline, the price of gold is expected to drop to around 1800.00 after successfully breaking through 1830.00 just now.
The continued decline will continue to record the latest 7-week low for gold.
However, if a surge is displayed at the close of trading this week, investors will be alert to see if the price is able to break through the 1830.00 level and the MA50 barrier again.
Will signal the beginning of a bullish movement, the price of gold can make an increase towards the previous resistance level at 1870.00.
