Gold prices dipped lower in Thursday's trading yesterday before seeing a rebound in different sessions.
However, the recovery did not change the pattern of falling gold prices which has continued since the beginning of the week.
The strengthening of the US dollar, which continued until yesterday, continues to put pressure on gold, which is losing its appeal to investors.
If examined on the XAU/USD chart which measures the value of gold against the US dollar, the price plunged on Thursday yesterday continuing the plunge the previous day.
The price drop to a 9-week low reached 2540.00 before a rebound was shown in yesterday's New York session approaching the 2580.00 level.
However, the increase did not succeed when the price began to level off and slowly resume trading in the Asian session and the beginning of the European session today (Friday).
The price that remains 'bent' below the Moving Average 50 (MA50) obstacle line on the 1-hour time frame on the XAU/USD chart indicates a continuation of the bearish trend.
The price drop is expected to continue further to a lower level towards the focus target at 2530.00 and further to the 2500.00 zone.
However, the situation of changing price direction is at risk of breaking out in the trading of the final sessions at the end of the week, possibly driven by profit-taking activities in the market.
For the expectation of an upward movement, the price that crosses the MA50 barrier and the 2580.00 level will signal for a higher increase.
If it continues to pass the 2600.00 level, the potential is more open for the price to extend its climb to the 2640.00-2670.00 zone.
