Not yet stopped, the decline in gold prices continued until yesterday Wednesday and has reached the important level of $1,920.
There was little change in market sentiment yesterday, the US dollar still gained the upper hand in trading heading into the end of the week.
In yesterday's New York session, the United States (US) published service sector survey data increased, adding support for the strengthening of the US dollar. Therefore, the price of gold is being pressured to fall.
If you look at the XAU/USD chart that measures the value of gold against the US dollar, the price has continued its decline yesterday until it broke through the 1920.00 level.
This is an important RBS (resistance become support) zone that is the focus of investors with the expectation that there will be a reaction when the price reaches that area.
As expected, prices temporarily leveled off around the 1920.00 zone until trading resumed today (Thursday) after showing a plunge yesterday.
The price movement below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the XAU/USD chart remains bearish, suggesting further declines.
If it continues lower, the price will go to the next concentration level at 1900.00.
Next, the 1885.00 support that was tested in August's trading will return as a target to be tested in the continued price decline.
However, if the price jumps and moves higher from the 1920.00 zone, the MA50 barrier will be overcome and become an indication of a change in the price trend again.
The price increase after passing the 1930.00 level is expected to reach back to the 1950.00 level which was a resistance last week.
