Gold investors are still not comfortable with the current price movement for the yellow metal despite the price increase shown yesterday.
This follows the movement of price volatility still seen hovering in the focus zone of $2,030 with investor concerns for the risk of gold prices falling further at the end of the week.
The situation will depend on the change in the value of the US dollar currency in the market which is currently still weak and gives room for gold prices to rise.
Because of that, the price movement on the XAU/USD chart, which measures the value of gold against the US dollar, saw yesterday's increase reaching 2044.00.
However, continuing to trade today (Thursday), the price dropped again hovering in the 2030.00 zone which has remained the focus for several weeks.
The Moving Average 50 (MA50) support line on the 1-hour time frame on the XAU/USD chart was also price tested in the European session.
If the price breaks down, this indicates that a further fall in the price of gold will occur.
From the 2030.00 zone, the price can drop to 2015.00, which is the level reached at the beginning of the week before the lower decline will continue towards the 2000.00 concentration zone.
However, the price could also bounce back if the 2030.00 zone fails to be crossed after testing it.
The price increase will try to overcome the high reached yesterday to continue the previous bullish pattern.
The target is to reach 2050.00 for investors to pay attention to what is the latest indication that the price will display for further movement.
