Unstoppable, gold prices continued to fall to deeper bottoms on Wednesday trading yesterday as uncertainty hit the market ahead of today's United States (US) inflation data report.
Usually putting pressure on the price of gold, the US dollar is not seen to show significant strengthening when it moves more gloomily yesterday.
Analysts see the appeal of gold assets fading even as risk-on market sentiment has traditionally pushed investors to safe-haven assets.
On the XAU/USD chart which measures the value of gold against the US dollar has seen the price plunge below the important level of 1920.00.
Looking at the price movement, the rise that started in the Asian session yesterday failed to cross the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the XAU/USD chart before bouncing back down.
This became an early signal for the price to fall which could later be seen in the New York session when the price reached the 1914.00 level.
Continuing trading in the Asian and European sessions today, the price moved relatively flat below the 1920.00 level which became a resistance for the price.
If the price continues to decline further, the latest 5-week low will be recorded with the price forecast to reach the 1900.00 concentration level.
However, if the price manages to soar above the 1920.00 level and break through the MA50 barrier, that will be an indication to investors for a change to the bullish trend for gold.
The continued increase will react to some previous focus zones such as 1930.00 before heading to the 1950.00 zone again.
