GOLD Analysis – Gold Takes a Look Before Plunging Almost to $1,900!

<p>&nbsp;Once again gold presented an aggressive move in yesterday's New York trading session as the US dollar currency moved briskly influenced by the critical data published.</p><p><br /></p><p>In conclusion, the US dollar is seen to show a significant strengthening after the initial opening of the New York session was presented with the United States (US) ADP employment report which measures the private sector.'</p><p><br /></p><p>The published figures soared for the biggest increase since February 2022, further strengthening expectations for policy tightening measures by the Federal Reserve (Fed).</p><p><br /></p><p>On the XAU/USD price chart which measures the value of gold against the US dollar, the price was initially seen to make an initial jump past the 1920.00 level and reached the 1927.00 level.</p><p><br /></p><p>However, immediately after the opening of the New York session, with published data strengthening the US dollar, the price of gold witnessed a significant contraction until it reached the lowest level of the week around 1903.00.</p><p><br /></p><p>The price movement, however, began to 'calm down' towards the close of trading in the New York session, which ended around the 1910.00 level.</p><p><br /></p><p>Until resuming trading today (Friday), the price is still hovering below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the XAU/USD chart as of the European session, signaling that gold remains bearish.</p><p><br /></p><p>Further decline if continued in these final sessions will expect the support zone at 1900.00 to be tested again like last week.</p><p><br /></p><p><br /></p><p>A dip lower below the 1900.00 zone would mark gold's latest low for a 4-month trading period.</p><p><br /></p><p>Investors are also cautiously waiting for indications of a change in gold's bullish trend if the price rises above the MA50 barrier and the 1920.00 level.</p><p><br /></p><p>The increase has the potential to continue higher towards the height reached last Wednesday around 1935.00.</p><p><br /></p><p>The target for the increase after the bullish signal is clearer is to reach the previous concentration zone at 1950.00.</p><p><br /></p><p>A clearer direction for the movement of gold will be determined after the US NFP employment report is evaluated at the issue in the New York session shortly.</p>