It is not a happy period for gold investors for the month of December when they have to witness a continuous fall.
Starting trading at the opening of the week yesterday, the price fell again below the $2,000 level, continuing the price plunge that occurred last Friday when the reaction to the published United States (US) NFP employment data.
The US dollar is strong following the employment data component for the month of November which is encouraging as well as putting pressure on the price of gold.
It can be observed on the XAU/USD chart that measures the value of gold against the US dollar, from the all-time peak level reached at the beginning of last December around 2144.00, the price has plunged to the level of 2000.00 as of last week.
This week, the price plunged below the 2000.00 level on Monday yesterday and reached the 1976.00 level in the New York session.
Despite a slight increase in the Asian trading session today (Tuesday), the price movement still remains in a bearish trend that moves below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the XAU/USD chart.
If the bearish pattern continues, the price that crosses the next 1970.00 zone is expected to go to the next concentration zone which is at 1950.00.
The last time prices traded in that zone was last mid-November and it is not impossible for prices to fall lower beyond that.
However, if the price successfully rises and overcomes the 2000.00 level which is the closest resistance, investors will be more optimistic expecting the price to continue to rise again.
After also breaking through the MA50 barrier, the bullish price movement is expected to head back to 2030.00 before the target shifts to 2050.00 if the rise continues.
US inflation data will be in focus tonight ahead of the FOMC meeting early Thursday expected to drive further gold moves.
