GOLD Analysis – Gold Closer to Falling to $1,920

<p>&nbsp;Worrying gold investors, the price of the commodity fell further on Tuesday, surpassing last week's lows.</p><p><br /></p><p>Although the US dollar was seen to be slightly challenged in the New York session yesterday following the dovish statement by the President of the Federal Reserve (Fed) of Philadelphia, Patrick Harker on monetary policy, gold still failed to rise.</p><p><br /></p><p>Analysts see the attraction of gold assets diminishing, instead investors prefer to hold cash amid risky market sentiment.</p><p><br /></p><p>If examined on the XAU/USD price chart which measures the value of gold against the US dollar, the surge in gold prices last Friday failed to continue at the beginning of this week.</p><p><br /></p><p>The price on the other hand shrank lower past the 1926.00 level and in yesterday's New York session has reached around 1923.00.</p><p><br /></p><p>After flatlining at the close of the New York session, prices are showing a rebound in the Asian session this morning (Wednesday) with the price increase seen testing the 1-hour Moving Average 50 (MA50) barrier level on the XAU/USD chart at around 1930.00.</p><p><br /></p><p><br /></p><p>If the price fails to pass the MA50 barrier, it is likely that the price decline will be shown again with the target still focused on the 1920.00 zone.</p><p><br /></p><p>After the price continues the decline past the 1920.00 zone will trigger the risk of gold falling to the 1900.00 level.</p><p><br /></p><p>However if the price shows a strong surge breaking through the MA50 barrier, the 1950.00 level has the potential to be reached again.</p><p><br /></p><p>A higher move would suggest a more pronounced bullish pattern with expectations to reach the previous concentration levels of 1970.00 or to the 1980.00 resistance zone.</p>