It is clear that the decline in value took place in yesterday's gold trading, which fell lower below the $2,000 price level following the strengthening of the US dollar.
Several factors are considered to be supporting the US dollar and at the same time have pressured the price of gold to fall.
In addition to the United States (US) 10-year treasury yield rising again, US retail sales data published in the New York session yesterday recorded a positive monthly increase in April.
In addition, the US dollar is supported by hawkish statements by several Federal Reserve (Fed) Presidents who believe that policy tightening measures still need to be continued.
The apparent strengthening of the US dollar in the New York session has dragged the price of gold down to a recent 2-week low.
It can be observed on the XAU/USD chart that measures the value of gold against the US dollar, the price that plunged through the 2000.00 level has reached around 1986.00.
Investors in the previous session were already prepared for a bearish signal when the price started to move below the Moving Average 50 (MA50) level on the 1-hour time frame on the XAU/USD chart.
The continued price movement today (Wednesday) slowed around 1990.00 in the Asian session until the European session.
The decline lower is expected to continue in the next session towards around 1970.00 which has been a price support zone in recent weeks trading.
If the decline continues, the price is seen to stop at the 1950.00 concentration zone and the price reaction in that zone will be paid attention by investors for the indication of further movement.
Meanwhile, if the price surge occurs again past the 2000.00 level, the MA50 barrier is also seen to be breached, triggering expectations for a change in price direction again.
Next, the increase will continue to the 2030.00 zone before the price reaches the 2050.00 level that was almost touched last week.
