After breaking the price record to a new all-time high yesterday, gold is again experiencing a decline in value.
The highest level reached was around the $2,222 level before the price started to pull back down until today (Friday).
The surge in prices to the highest level was triggered when the market reacted to the FOMC meeting early Thursday morning yesterday which has pushed the US dollar currency down.
But the momentum failed to be maintained when market sentiment turned risky starting in the European session yesterday following the Swiss National Bank (SNB) cutting interest rates early.
The resurgence of the US dollar has put pressure on gold so that its price has retreated from the highest level it managed to reach.
Examining the XAU/USD chart which measures the value of gold against the US dollar, the price dropped back below the 2200.00 level again and yesterday's decline reached around 2167.00.
The price continues to be pressed below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the chart which suggests a bearish movement for gold.
If the lower decline continues in the final sessions for this week, the expected zone around 2145.00 will be the focus for price testing.
Falling below that level will signal to investors that a downtrend in gold prices is about to begin.
On the other hand, investors will expect gold prices to bounce back at any time if the US dollar weakens again in the market.
The 2200.00 level will be crossed again and the price has the potential to continue hunting for new record highs.
