The movement of gold prices this week is a little gloomy, making the excitement of investors start to relax again after failing to maintain the surge pattern like last week.
The trading of the US dollar currency is still seen as weak, but failed to be used by gold to further increase its value.
Continuing today (Wednesday), gold prices fell in the Asian session before rising again in the European session, while investors remained cautious awaiting clearer indications for the yellow metal's trade.
On the XAU/USD price chart which measures the value of gold against the US dollar has seen an increase at the beginning of the opening of this week to the level of 1929.00 before the price retreated lower again.
On Tuesday yesterday, investors began to assess a bearish signal for gold when the price started to move below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the XAU/USD chart.
Continuing today, the price dropped to the 1900.00 level as expected by analysts seeing the price test the zone.
Reacting, the price bounced back from the zone, but the price movement is still below the MA50 level.
If the price continues to plunge below the 1900.00 zone, the price will move lower to the previous concentration level at 1870.00.
Next, the continued decline will lead to the 1830.00 zone which became price support in early January trading.
On the other hand, if the price rebounds from the 1900.00 zone, the price of gold will resume the bullish trend of the previous week and overcome the height reached at the beginning of the week.
The continued increase is seen to lead to a higher target around 1950.00 which will be tested.
