GOLD Analysis – Gold Price Falling More and More, Target $1,950

<p>&nbsp;Gold trading rattled investors on Tuesday as prices plunged deeper.</p><p><br /></p><p>The attraction to gold assets is seen to be fading after the excellent price movement throughout last October.</p><p><br /></p><p>After the price failed to break above the $2,000 level last week, a bearish pattern has been on display since the opening of trading earlier this week.</p><p><br /></p><p>If you look at the XAU/USD chart that measures the value of gold against the US dollar, the price has managed to reach the 2000.00 level in a surge last Friday when the United States (US) NFP data was published.</p><p><br /></p><p>But that level is seen now as an obstacle that holds the price from going higher.</p><p><br /></p><p>The drop in prices was displayed at the opening of the beginning of the week until it continued on Tuesday yesterday.</p><p><br /></p><p>The daily low hit yesterday was around 1957.00 before rebounding to close the New York session around 1969.00.</p><p><br /></p><p><br /></p><p>Price movement slowed down in the Asian session in Europe today (Wednesday), but remained below the Moving Average 50 (MA50) obstacle line on the 1-hour time frame on the XAU/USD chart, signaling that price movement is still in a bearish trend.</p><p><br /></p><p>A further drop in price is expected to reach 1950.00 for the price to test the RBS (resistance become support) zone.</p><p><br /></p><p>A lower breakout will be a warning to investors to prepare for a more severe fall in gold prices.</p><p><br /></p><p>On the other hand, if the price recovers to make a rally again, breaking the MA50 barrier and the 1980.00 zone will be a positive indicator.</p><p><br /></p><p>A rise in gold prices will retest important resistance at the 2000.00 zone before being able to continue its climb to a higher price peak after that.</p>