Starting to warn investors, the gold asset began to show a decline in value after trading at the beginning of the brilliant week soared to the $2,000 level.
The pattern of gold's movement began to change as trading headed into the upcoming FOMC meeting while the banking crisis that hit the market was still closely watched by investors.
Previously, the US dollar traded down has given gold room to rise since last week and last Monday managed to touch the $2,0000 level.
However, resuming trading on Tuesday yesterday, the bearish pattern began to appear again even though the US dollar was still moving bleakly.
On the XAU/USD chart, which measures the value of gold against the US dollar, the price has fallen below the important level of 1950.00 in the New York session yesterday.
The price has also returned to move below the barrier level of the Moving Average 50 (MA50) on the 1-hour time frame on the XAU/USD chart, which has given an early signal of an impending trend change.
After reaching around 1935.00 at the end of the New York session, the weak horizontal price around that area resumed trading today (Wednesday).
If the situation continues, the price of gold could drop lower towards the next concentration level which is at 1900.00.
Next, the level of 1870.00 will be reached if the US dollar strengthens and pressures the price of gold to continue falling.
On the other hand, if the price jumps back past the 1950.00 level, the MA50 barrier will try to be overcome before giving investors a positive expectation that the price increase will continue.
Then, the critical zone of 2000.00 will once again be tested and the price of gold has the potential to reach new highs.
