Gold investors had to endure disappointment once again after hopes of seeing gold prices fly higher again faded again.
Previously the price of gold has shown an increase following the negative reaction of the US dollar which weakened following the results of the FOMC meeting.
However, the US dollar regained its strength yesterday towards the US NFP employment data report which will shake up trading this weekend.
On the XAU/USD price chart which measures the value of gold against the US dollar has seen the price of gold plummet again yesterday after the previous rise had managed to pass the 1900.00 focus level.
Failing to hold above the 1900.00 level the price retreated from that zone and returned back to the 1870.00 focus zone.
Moving horizontally in the zone on continued trading on Friday, the price gave a bearish signal with a movement below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame.
If the bearish pattern is maintained, the price is seen to decline lower towards the support zone at 1850.00.
And the lower decline could reach up to the zone around 1830.00 to continue hunting the latest 3 -month lows.
However, if the price of gold rebounds, the 1900.00 level will return to the focus to be achieved before signaling a bullish trend.
A higher rise beyond 1900.00 is likely to push positive investors ’expectations to see gold heading back to the 2000.00 target.
