The movement of gold prices has already started briskly at the start of trading earlier this week, especially in the New York session yesterday when a new price record was set again.
The continued strengthening of the US dollar is a factor pushing the price of gold down even in a risky market environment.
Analysts see gold assets becoming less attractive as investors prefer to hold cash, seeing the US dollar more in demand.
Therefore, it can be observed on the XAU/USD chart that measures the value of gold against the US dollar, the price continues to maintain a bearish movement pattern until the beginning of this week.
Yesterday's decline has hit a new 6-week low around 1903.00 before bouncing back to around 1913.00.
However, the price movement continues to remain below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the XAU/USD chart, indicating no change for the current bearish trend.
Gold prices are expected to test the key zone at 1900.00 or possibly break even lower today.
If it continues to fall, the latest price target will move to the level of 1885.00 which will record the lowest level of gold since last March.
But if the price of gold rises again, where will the target level be the focus?
The initial rise will be towards the 1920.00 level to test the resistance after the price successfully overcomes the MA50 barrier level with the initial signal of a trend change.
Next, the price will continue to rise towards the 1930.00 zone which was tested several times in the previous weeks.
Changes in the current market sentiment as well as other factors need to be emphasized by investors to detect any risk on gold trading early.
