Compared to last week's decline, gold prices this week were more flat traded in a cautious market environment.
The focus remains on the issue of the debt ceiling in the United States (US) which has not yet reached an agreement on discussions where the deadline of June 1 is approaching.
Thus, the US dollar that remains in a state of turmoil throughout this week also makes gold trading also restless.
If you look at the XAU/USD chart which measures the value of gold against the US dollar, the price only reached a height of 1980.00 this week and remains higher.
While the price is moving above the 1950.00 support zone after last week's decline reached around that area.
In yesterday's Wednesday trading, the price that rose to the level of 1985.00 fell back to around 1957.00 at the end of the New York session.
The price drop below the Moving Average 50 (MA50) barrier again indicates a bearish signal for the price, but if the lower drop is to continue, the price must first penetrate the 1950.00 level.
To decrease lower requires factors that clearly support the strengthening of the US dollar and suppress the price of gold to fall.
The price that managed to drop past the support of 1950.00 is seen to be heading towards the target around 1900.00.
Hitting that target would mark a new 10-week low for gold.
However, if the price of gold starts to rise again, crossing the MA50 barrier will also try to cross the 1980.00 zone which is the price resistance this week.
Next, the price will continue to rise and test the SBR zone (support become resistance) at the 2000.00 zone.
