Is there an attractive price movement in gold trading yesterday?
Market concerns about the global banking crisis that eased a little at the beginning of the week are seen to reduce the attraction of safe-haven assets including gold.
The US dollar was traded weakly since the opening of trading earlier this week as the development of the crisis was observed and the prospect of an end to policy tightening by the Federal Reserve (Fed).
On the XAU/USD price chart which measures the value of gold against the US dollar, the price movement at the beginning of the week was seen hovering above the 1950.00 zone after the price had declined from the high level of 2000.00 reached last week.
Ending at the level of 1950.00 yesterday, the price then showed an increase in the New York session showing an increase in gold reaching a level around 1975.00.
The price that also crossed the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the XAU/USD chart indicates that the price will continue to rise higher.
However, trading in the Asian session this morning (Wednesday) continues into the European session, seeing the price of gold display a decline back to around 1960.00.
If the increase successfully continues again, it is likely that the level of 1975.00 that was reached before can be overcome before the price goes back to the target level of 2000.00.
The price of gold will record a new high if the 2000.00 resistance is successfully broken this week.
Beware if the price continues to fall lower to the 1950.00 zone again where investors will look for any indication of a bearish move in gold.
The price that continues the decline is seen to be heading towards the 1900.00 level, one of the important levels that became the focus of the price in the previous trading.
Next, the 1870.00 level will be the next target if the price of gold continues to drop lower.
