Surprised investors when the price of gold plunged again in yesterday's New York trading session.
The decline in prices that occurred was greater than the spike after the FOMC meeting.
The US dollar, which was expected to continue its decline after the dovish signal by the Federal Reserve (Fed) following the FOMC meeting, instead strengthened to cover previous losses and make gold prices fall again.
Uncertainty continued to hit the market at the end of the week as the market's focus now shifted to the publication of the United States (US) NFP employment data report.
Expectations for a weaker jobs data reading are likely to have a negative impact on the US dollar, but investors should be wary of volatile reactions ahead of the close of trade this week.
Looking at the XAU/USD price chart which measures the value of gold against the US dollar, the price that has surged past 1950.00 did not last long above that level.
After leveling off for a while, the price then plunged to reach around 1912.00 until trading resumed in the Asian and European sessions today (Friday).
Investors digested a bearish signal for gold trading as the price moved back below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the XAU/USD chart.
The price drop is likely to continue towards the 1900.00 support level.
A break lower will push the price towards around 1870.00 which is the price focus zone in the previous trade.
But a surge in price can also happen and it is likely that the price will return to the 1950.00 resistance zone.
After passing that resistance, the price will aim to climb higher with a more clear bullish movement potentially reaching up to the 2000.00 level.
