GOLD Analysis – Gold Will Fall Below $1,900 Before This Week Ends?

<p>&nbsp;The price of gold continued to sink deeper when resuming trading on Thursday yesterday following the strengthening of the US dollar which continued in the New York session which rose again from the gloom of the previous sessions.</p><p><br /></p><p>Thus, gold failed to withstand the pressure until it fell to the lowest level again in the 3-month trading period.</p><p><br /></p><p>This can be observed on the XAU/USD price chart which measures the value of gold against the US dollar with a declining pattern has been displayed starting from the beginning of the week.</p><p><br /></p><p>After falling from the 1950.00 zone, the price of gold continued to show a decline and until yesterday's New York session, the price had reached around 1913.00.</p><p><br /></p><p>The price movement today (Friday) was slower with a slight decline continuing to the 1910.00 level before a rebound to resume trading in the European session to around 1920.00.</p><p><br /></p><p>The price that remains hovering below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the XAU/USD chart expects the bearish trend to continue.</p><p><br /></p><p>The New York session is expected to show more price momentum before the week's trading draws to a close.</p><p><br /></p><p><br /></p><p>If the decline continues, the price is seen to go towards the main target level at 1900.00 which has the potential to be a support level for gold.</p><p><br /></p><p>That level was last touched in mid-March before prices broke all-time highs in early May.</p><p><br /></p><p>For expectations if there is a price increase again, breaking the 1930.00 level and also the MA50 barrier will prompt a higher bounce to head back to the 1950.00 zone.</p><p><br /></p><p>Investors will also be ready for a trend change signal for gold in addition to facing the risk of profit taking activity at the end of the week which can make price movements volatile.</p>