Gold investors were a bit nervous yesterday after the price of the yellow metal showed a significant decline in the European session until the opening of the New York session.
This situation is driven by the recovery that took place on the US dollar from its previous dismal performance.
However, investors were a little relieved when the fall in gold prices did not continue but instead recovered from the initial plunge when approaching the end of the New York session.
If you look at the XAU/USD chart that measures the value of gold against the US dollar, the price hovering around 2038.00 has shown a plunge to break through the 2030.00 zone.
Investor anxiety finally eased again after the price that reached around 2020.00 bounced back up to close the end of the New York session trading above the 2030.00 zone again.
Throughout the Asian and European trading session today (Friday), the price is seen to be flat around the 2033.00 level as well as testing the barrier line of the Moving Average 50 (MA50) on the 1-hour time frame on the XAU/USD chart.
Investors await the move for the final session of the week shortly while remaining alert to the risk of price volatility.
For the expected price movement below the 2030.00 zone, the drop in price could surpass yesterday's low or that reached at the beginning of the week around 2015.00.
Next, the continued decline lower will lead to the concentration zone at 2000.00.
However, if the price shows a more positive surge at the close this week, the upside will still target the 2050.00 level to be tested.
If it succeeds in breaking higher, the price will return to reach the height of last week around 2065.00.
