The price of gold is seen to continue falling on Wednesday's trading yesterday, making investors uncertain.
However, the situation was expected earlier based on the market's assessment of the published United States (US) inflation data.
Examining the XAU/USD price chart which measures the value of gold against the US dollar has seen the price continue its decline to a recent 6-week low yesterday.
However, after entering the European session, the downward momentum is seen to slow down and the price of gold is flat above the 1830.00 level.
The horizontal movement continued throughout the New York session.
Continuing trading today (Thursday), the price is still hovering above the 1830.00 level, but still showing bearish movement signals where the price remains below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the XAU/USD chart.
The US dollar, which has the potential to strengthen, will push the price down below the 1830.00 level before continuing to decline to the 1800.00 target level.
A bearish pattern will continue to be expected if there is no indication of a trend change.
In the event of a significant surge in price and also breaking through the MA50 barrier, investors will begin to prepare to witness the upward trend in gold prices again.
The initial target is at the resistance of 1870.00 which is seen to be tested before the successful increase continues higher and will target the 1900.00 zone.
