Gold trading is increasing anxiety for investors when the price dropped lower on Wednesday yesterday approaching the level of $2,000.
The strengthening of the US dollar remained constant from the beginning of the week until it depressed the price of gold to fall lower than the surge that was displayed at the end of last week.
With the economic data of the United States (US) continuing to record positive readings, the US dollar has the potential to maintain a good performance and also put constant pressure on gold.
On the XAU/USD chart which measures the value of gold against the US dollar, the price showed a plunge last Tuesday from the 2050.00 level after being flat at the beginning of the week.
The price plunge continued until Wednesday yesterday almost touching the 2000.00 level which is the target level that investors are watching.
The price movement is flat above the zone in the Asian and European sessions today, but the price decline can be expected to continue in the New York session later tonight.
The trend remains bearish when the price is observed to be still moving below the Moving Average 50 (MA50) obstacle line on the 1-hour time frame on the XAU/USD chart.
A price drop if it happens will test the 2000.00 level and the price reaction will be observed as the price bounces or breaks through lower.
If it breaks down, the decline will extend to the 1970.00 zone and record the latest 5-week low.
Investors still expect the price of gold to recover and make an increase if it remains above the 2000.00 zone.
The focus level is at 2030.00 which will be the focus for the increase before continuing towards the 2050.00 level.
