Although the price of gold did not decline severely on Wednesday's trading yesterday, but investors still face the risk of a fall in the price of the yellow metal towards the end of the week.
The US dollar, which affects the price of gold, reacted to the United States (US) inflation data published in the New York session yesterday.
At first, the US dollar seemed to strengthen at the beginning of the data publication, but then retreated again towards the end of the session.
It can be seen on the XAU/USD chart that measures the value of gold against the US dollar, the price was pushed down to reach 1906.00, but bounced back to 1915.00.
The price fluctuated within that price range until it continued into the Asian session this morning (Thursday).
However, it still gives a bearish signal for gold when the price is seen hovering below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the XAU/USD chart.
In the European session this afternoon, the price showed a downward pattern towards the level reached yesterday at 1906.00.
The decline lower is expected to continue with the target still directed at the important concentration zone of 1900.00.
Analysts expect that there will be an interesting reaction displayed in the price when the decline has reached that area.
However, be alert if the price changes direction and makes an increase and crosses the MA50 barrier. This will be an early signal of a trend change.
The price increase will return to the 1920.00 level and if broken higher, the price increase will continue towards 1930.00.
