True to commodity analysts' forecasts, gold prices fell back to $ 1,900 in the opening trade earlier this week.
The focus level was hit by the price on the decline that continued into the beginning of the New York session yesterday before the price of gold began to flatten around it until the end of the session.
The clear strengthening of the US dollar earlier in the week also put pressure on gold as well as other major currencies in the market.
Risky market sentiment is seen failing to boost attraction to gold as a safe-haven asset following a more focused focus on the US dollar after Federal Reserve (Fed) Chairman Jerome Powell confirmed a more aggressive interest rate hike at a May meeting.
Thus, as can be seen on the XAU/USD price chart which measures the value of gold against the US dollar, last week's decline continued earlier this week to the level of 1900.00 after the opening price around 1930.00.
The price of gold which remains moving below the Moving Average 50 (MA50) barrier level on the 1 hour time frame still signals to continue the bearish trend.
The horizontal movement of gold around 1900.00 continues until the beginning of the European session today (Tuesday).
A lower decline of the price will be expected in the next session below the 1900.00 level with the latest target expectation being at the 1870.00 zone.
In fact, the continued decline is seen to reach up to the support zone at 1830.00.
However, if the price manages to make a jump from the 1900.00 support, the MA50 barrier will be passed and give a signal for a change in the uptrend for gold.
The initial rise will first test the resistance at the 1950.00 level which was the focus of last weekend's trading.
And the higher gains that were successfully continued will return to targeting the 2000.00 high which was almost touched on last week’s rise.
