GOLD Analysis – Gold Up First Before Plunging Below $1,920

<p>&nbsp;The rapid movement of gold prices in the trading session of New York yesterday invited the excitement of investors with a surprise that also happened.</p><p><br /></p><p>The XAU/USD price chart which measures the value of gold against the US dollar was in focus yesterday.</p><p><br /></p><p>Since the beginning of the week, the price of gold was shown to circulate slowly above the 1920.00 zone until yesterday's trading in the Asian and European sessions.</p><p><br /></p><p>Entering the early New York session yesterday, gold prices initially showed a surge past the 1930.00 resistance level reaching this week's latest high at 1935.00.</p><p><br /></p><p>However, a surprise occurred when the price of gold then continued to change direction making a drastic plunge to the level of 1920.00.</p><p><br /></p><p>After hovering below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the XAU/USD chart, investors are ready for the bearish movement signal.</p><p><br /></p><p>The price continued to decline past 1920.00 until at the end of the session the price touched the level of 1915.00.</p><p><br /></p><p>However, the price movement slowed again in the Asian session this morning saw the price pulled back to the 1920.00 level until trading continued into the European session.</p><p><br /></p><p><br /></p><p>Market analysts expect trading in the next session to be more challenging for gold in the face of important economic data from the United States (US) that will affect the movement of the US dollar.</p><p><br /></p><p>If the price of gold continues to be pushed lower, the target is to see the price retest the 1900.00 support zone that was hit last week.</p><p><br /></p><p>In fact, prices can drop lower if the US dollar manages to maintain its strength and continue to add pressure to gold.</p><p><br /></p><p>Meanwhile, if the price manages to bounce back above the 1920.00 level and break through the MA50 barrier, the rise will continue to challenge yesterday's high.</p><p><br /></p><p>A higher move will be targeted towards the previous focus zone at 1950.00 and will also record the latest 2-week high.</p>