Even though it is not popular with investors, the expected situation has occurred in gold trading overnight with prices continuing to fall lower.
There was no change in movement while the market saw the US dollar still maintain its strength and pressure gold prices to fall, even though economic data from the United States (US) was published gloomy in the New York session last night.
Examining the XAU/USD price chart which measures the value of gold versus the US dollar, the price met the analyst's forecast to fall to the level of 1900.00 in the New York session.
The temporary increase in the European session was only limited to the 1915.00 level before a significant plunge occurred in the next session.
Gold price movements remain with a bearish trend which is below the level of the Moving Average 50 (MA50) resistance on the 1 hour time frame on the XAU/USD chart.
Continuing trading today (Wednesday), prices slowly rose above 1900.00 in the Asian session before the decline continued to penetrate that level.
With continued momentum, gold prices will continue their decline lower with the latest target having shifted to around 1885.00.
The 1885.00 level became support for the price which was broken when the price fell during trading last August, but the price has rebounded again.
If there is a change in direction in the price of gold, investors will research any clues to determine the current trend.
If it turns bullish, gold prices will likely move above the original 1900.00 before heading back to the previous 1920.00 support level.
