As expected by analysts and further weighing on gold investors, the price of the yellow metal further declined to lower levels on Thursday yesterday.
The US dollar is still attracting investors in a risky market environment, compared to gold which is also categorized as a safe-haven asset.
Price movements can be observed on the XAU/USD chart which measures the value of gold against the US dollar.
The price hovering slowly since the Asian session above the 1890.00 level then showed a surge in the European session continuing the opening at the beginning of the New York session.
After testing the important level at 1900.00, the price is seen to have failed to overcome the Moving Average 50 (MA50) obstacle level on the 1-hour time frame on the XAU/USD chart, signaling a still bearish movement.
The bearishness was again exhibited towards the end of the New York session with the latest low recorded at 1885.00.
The price rebounded slightly from that level to continue trading today (Friday) and remained hovering below the MA50 barrier until the European session.
The price movement is expected to be more vigorous in the next session as the close of trading this week.
If the price maintains a bearish pattern, the decline in price is likely to break through the current support of 1885.00 before extending the decline lower.
The target is to go to the next concentration level which is at 1870.00.
However, if the price surges past the MA50 barrier and breaks through the 1900.00 level, investors should be wary of early signs of a change in the gold price trend.
The rise can continue to the previous concentration level which is at 1920.00 which still remains a resistance for the price.
