Despite a slight rebound, gold investors are still not relieved to see the price movement of the yellow metal plummeting during this week's trading.
The strengthening pressure of the US dollar since the beginning of the week has buried the price deeper after falling below the $1,900 level.
Although the movement pattern of the US dollar changed on Thursday yesterday, the price of gold still did not stop falling lower.
However, the previous strengthening momentum of the US dollar which started to be gloomy towards the end of the week further slowed down the fall in gold prices.
On the XAU/USD price chart which measures the value of gold against the US dollar, the decline was seen to continue from the beginning of the week until yesterday's New York session.
After breaking through key levels at 1900.00 and 1885.00, the price has plunged to around 1858.00, marking a new 6-month low for gold.
The pattern of price increases began to show again today (Friday), but prices are still at risk of falling.
The price increase is seen trying to stay above the 1870.00 level which was successfully passed again but is still below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the XAU/USD chart.
If the barrier fails to be broken, the probability is for the price to resume its decline again.
The 1855.00 level is seen to be an important level to test or is likely to be the latest support for gold prices.
On the other hand, if the price manages to break through the MA50 barrier, the 1885.00 level is seen as the initial resistance to be tested before the rise continues to the important level of 1900.00 again.
