After jumping for joy at the end of last week, gold investors sat down again this week when gold trading yesterday showed a fairly significant fall that continued until today (Wednesday).
After leveling off on Monday, the price of gold plunged again following the re-strengthening factor of the US dollar currency which pressured the commodity.
The US dollar is strong following expectations for the easing of monetary policy to be implemented by the Federal Reserve (Fed) is decreasing after the latest economic data is examined.
If the pressure continues, gold prices could fall further towards the end of the week.
Examining the XAU/USD price chart which measures the value of gold against the US dollar, the price that hovered slowly yesterday around the 2050.00 level has shown an early plunge in the European session.
It also signals a bearish movement for gold when the price also moves down below the Moving Average 50 (MA50) obstacle line on the 1-hour time frame on the chart.
Until the New York session the decline continued, the level of 2024.00 was reached before the decline continued again today.
As of this afternoon's European session, prices have eased to around 2018.00, just short of surpassing last week's lows.
The continued decline is seen to target the key focus level at 2000.00.
In fact, the price could plunge further below that level if the current market situation remains unchanged.
Meanwhile, for the expectation if there is a price increase again, the 2050.00 level will be tested which is now seen as an obstacle for the price.
A break through that resistance would prompt a move higher to around 2060.00 or 2070.00 again.
