As expected, the continued strengthening of the US dollar in a risky market environment has put pressure on the falling gold prices this week.
It can be seen that the movement of the price of gold against the US dollar shown on the XAU / USD chart has plummeted below the level of $ 1900 which is the price level.
With the lackluster development of the US economic stimulus package and the increase in cases of Coronavirus infection strengthening the US dollar has seen gold prices drop more than 400 pips from the SBR zone (support become resistance) 1910.00 to the support zone 1875.00 on Wednesday.
On Thursday's trading, sentiment remained risky as prices continued to decline to slightly lower levels reaching around 1860.00.
Prices that remain hovering below the Moving Average 50 (MA50) resistance level during the 1 hour time frame of the price signal give a bearish trend on the XAU / USD chart.
A lower price drop is expected up to the support level of 1850.00 which was tested in last September trading but failed to break to a lower level.
However, if market sentiment changes, a price increase that exceeds the dynamic barrier of MA50 will return to expect a rise again towards the 1900.00 level.
