Gold traded lower towards the end of the week as the strengthening shown by the US dollar on Thursday yesterday pressured the precious commodity.
Investors who expected gold prices to rise to a higher level were not achieved when the price was seen to decline back towards the $2,000 level.
Can be examined on the XAU/USD price chart which measures the value of gold against the US dollar yesterday Thursday initially saw an increase to around 2040.00.
Then the New York session was shaken by a quite drastic drop in the price of gold until it reached the level of 2011.00.
The price moving back below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the XAU/USD chart signals a bearish movement for gold.
Despite slowly resuming trading today (Friday), the price still shows a downward pattern and is getting closer to the 2000.00 level.
It is likely that more vigorous price movements will be shown in the last session of the week with an interesting reaction expected at the 2000.00 level.
If the price plunges below the 2000.00 level, a more clear bearish signal will expect a drop in the price of gold to reach the 1950.00 zone.
Hitting that zone would mark the gold price's latest low for a 5-week trading period.
However, if the surge occurs again, crossing the MA50 barrier will signal the beginning of a bullish pattern and give investors relief.
The 2050.00 level will be an early target to reach before the price has the potential to re-reach the all-time high record created last week.
