GOLD Analysis – Will Gold Drop to $1,900?

<p>&nbsp;The price of gold fell back down again at the opening of trading early yesterday after investors saw a surge last Friday.</p><p><br /></p><p>The effect of the United States (US) NFP employment report in the last session last week which made the US dollar weaker has given room for gold prices to rise.</p><p><br /></p><p>However, the space was closed again following a statement by a member of the Federal Reserve (Fed) who was seen supporting the US dollar to move strongly.</p><p><br /></p><p>Governor Michele Bowman expressed the view that additional interest rate hikes would need to be implemented by the central bank to bring inflation down to the 2% target level.</p><p><br /></p><p>If some other statements present also support the situation, the US dollar is likely to strengthen further towards the release of US inflation data which is predicted to increase again.</p><p><br /></p><p>This is putting more pressure on gold and prices could fall lower this week.</p><p><br /></p><p>On the XAU/USD chart which measures the value of gold against the US dollar, the price is seen to have made a decline from the level of 1945.00 at the opening of the first session of the week until it reached 1932.00 at the New York session yesterday.</p><p><br /></p><p><br /></p><p>Continued price movement today (Tuesday) moving below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the XAU/USD chart is warning gold investors of a bearish move.</p><p><br /></p><p>The price could fall lower in the following sessions overcoming last week's level with the target to test the 1920.00 level.</p><p><br /></p><p>A break lower would expect a drop in the price of gold down to the important 1900.00 zone.</p><p><br /></p><p>However, if there is a surge again, the price is expected to go back to the 1950.00 level for the price to recover from last week's fall.</p><p><br /></p><p>A higher rise for the price of gold is seen to approach the previous concentration levels such as 1970.00 and the 1980.00 resistance zone.</p>