The current situation of price movement is less favorable to gold investors when the positive pattern from the beginning of the week has started to change.
But this does not come as a surprise as investors are ready to expect a drop in the price of gold after the record high in history was broken again this week.
The US dollar also showed recovery on Thursday trading yesterday and also pressured the price of gold to decline again.
Observed on the XAU/USD chart which measures the value of gold against the US dollar, the price showed a decline again after reaching a high of 2483.00 last Wednesday.
The price movement that bowed below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the chart yesterday triggered an early signal for the bearish trend movement to begin.
The price continued its decline until the Asian session this morning and then reached around 2420.00 at the opening of the European session.
With the displayed pattern, the price of gold is seen to tend to drop lower until the last trading session for this week.
It is likely that the 2400.00 level will be breached for further price declines.
As for the price increase, the level around 2430.00 is seen as an initial resistance that the price needs to pass before climbing higher again.
Breaking through the MA50 barrier will again increase the potential for gold prices to continue hunting for the latest all-time high at 2500.00.
