It's getting harder for gold investors when they have to watch the price of the yellow metal fall again yesterday until it falls below the $1,900 level!
The US dollar is still the driving factor for gold prices, the king of the currency continues to maintain its strengthening pace after the market examines the minutes of the FOMC meeting.
Examining the report, the US dollar is seen to strengthen for a longer period with the expectation that monetary policy tightening measures will be continued by the Federal Reserve (Fed).
This is supported by the release of several key indicator data for the central bank including GDP, NFP and inflation in the United States (US) which recently projected an increase in interest rates could be implemented.
On the XAU/USD price chart, which measures the value of gold against the US dollar, the bearish pattern of the price has continued since several weeks until yesterday.
The price drop in the New York session yesterday was finally seen to have managed to penetrate the important support zone of 1900.00, reaching around 1892.00 at the end of the session.
The price movement remains below the Moving Average 50 (MA50) barrier level on the 1-hour time frame of the chart, suggesting that there is still no signal for the bearish pattern to change.
The lower decline is expected to continue until reaching the concentration level around 1885.00 and also 1870.00.
However, if the price shows a rebound pattern again, it will give relief to investors to watch for any signs of bullish movement starting again.
If the price rebounds above the 1900.00 level and crosses the MA50 barrier, it is likely that the price can climb back towards the 1920.00 resistance level.
Once, the bullish signal is clearer, the price will continue to rise to the previous concentration zone at 1930.00 after it was last tested last week.
