The bright rays of gold that shined this week were slightly dimmed by the depreciation that occurred in Thursday's trading yesterday.
The price of gold has managed to reach a 3-week high but is starting to show a decline and is warning of a change in price direction at the close of this 2023 trade.
The situation that occurred was driven by the recovery in the US dollar currency following the analyst's assessment of profit taking activity on previous US dollar sales positions.
Examining the XAU/USD chart which measures the value of gold against the US dollar, the previous price maintained a continuous rising pattern until yesterday's Asian session reached a height of 2088.00.
However, in the European and New York sessions yesterday, the price drop started again, seeing the price drop past the 2080.00 and 2070.00 levels.
It becomes an early signal for a bearish change for gold when the price starts to move below the Moving Average 50 (MA50) obstacle line on the 1-hour time frame on the XAU/USD chart.
The Asian session this morning (Friday) showed a slow rise in price past the 2070.00 level again, but it was still seen to be stagnant under the MA50 barrier until the European session.
If the following barrier fails to be cleared, the price is likely to continue yesterday's decline below the 2070.00 level again.
Next, the target level to aim for on the downside is around 2050.00.
Meanwhile, for a higher increase, if the price of gold recovers, it will cross the 2080.00 level and reach the height reached in the Asian session yesterday.
In fact, the price of gold may continue to rise to its latest high for the close of this 2023 trade.
