Gold fell lower on Thursday trading yesterday following the strengthening of the US dollar still supported by the latest factors.
The United States (US) economic growth data published in the New York session yesterday recorded an increased figure, supporting the US dollar to move strongly during the session.
Thus, the strengthening of the US dollar continued to push the value of gold to a lower level yesterday, surpassing the lowest level reached last week.
Examining the XAU/USD price chart which measures the value of gold against the US dollar saw that as soon as the US GDP data was published yesterday, the price continued to plunge through the 1950.00 zone.
The zone came into focus as support for the price when last week's decline reached its surroundings and was also tested this week.
However, the price decline that continued yesterday finally managed to break through that support and hit a new low around 1940.00.
Moving on to trading today (Friday), the Asian session and the European session saw the bullish pattern redisplayed slightly past 1950.00 to around 1955.00.
Price is seen testing the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the XAU/USD chart and investors are watching for a reaction for further indications of gold movement.
If it breaks through the MA50 barrier, a further move higher is likely to be seen heading back to resistance around the 1980.00 zone.
And then, the price will reach back to the important level of 2000.00 which will serve as the SBR (support become resistance) zone for the price.
However, if the price pulls back and resumes trading in the last session of the week, the latest low is expected to be recorded again.
Overcoming the level reached yesterday, the price which continues to decline is seen to aim to reach the concentration level at 1900.00.
