GOLD Analysis – Gold Weakens Below the $2,000 Level

<p>&nbsp;It is not a happy period for gold investors for the month of December when they have to witness a continuous fall.</p><p><br /></p><p>Starting trading at the opening of the week yesterday, the price fell again below the $2,000 level, continuing the price plunge that occurred last Friday when the reaction to the published United States (US) NFP employment data.</p><p><br /></p><p>The US dollar is strong following the employment data component for the month of November which is encouraging as well as putting pressure on the price of gold.</p><p><br /></p><p>It can be observed on the XAU/USD chart that measures the value of gold against the US dollar, from the all-time peak level reached at the beginning of last December around 2144.00, the price has plunged to the level of 2000.00 as of last week.</p><p><br /></p><p>This week, the price plunged below the 2000.00 level on Monday yesterday and reached the 1976.00 level in the New York session.</p><p><br /></p><p>Despite a slight increase in the Asian trading session today (Tuesday), the price movement still remains in a bearish trend that moves below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the XAU/USD chart.</p><p><br /></p><p>If the bearish pattern continues, the price that crosses the next 1970.00 zone is expected to go to the next concentration zone which is at 1950.00.</p><p><br /></p><p><br /></p><p>The last time prices traded in that zone was last mid-November and it is not impossible for prices to fall lower beyond that.</p><p><br /></p><p>However, if the price successfully rises and overcomes the 2000.00 level which is the closest resistance, investors will be more optimistic expecting the price to continue to rise again.</p><p><br /></p><p>After also breaking through the MA50 barrier, the bullish price movement is expected to head back to 2030.00 before the target shifts to 2050.00 if the rise continues.</p><p><br /></p><p>US inflation data will be in focus tonight ahead of the FOMC meeting early Thursday expected to drive further gold moves.</p>