GOLD Analysis – Gold 'Dizzy' When CPI Is Published, Price Will Plunge To $1,900?

<p>&nbsp;Although the price of gold did not decline severely on Wednesday's trading yesterday, but investors still face the risk of a fall in the price of the yellow metal towards the end of the week.</p><p><br /></p><p>The US dollar, which affects the price of gold, reacted to the United States (US) inflation data published in the New York session yesterday.</p><p><br /></p><p>At first, the US dollar seemed to strengthen at the beginning of the data publication, but then retreated again towards the end of the session.</p><p><br /></p><p>It can be seen on the XAU/USD chart that measures the value of gold against the US dollar, the price was pushed down to reach 1906.00, but bounced back to 1915.00.</p><p><br /></p><p>The price fluctuated within that price range until it continued into the Asian session this morning (Thursday).</p><p><br /></p><p>However, it still gives a bearish signal for gold when the price is seen hovering below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the XAU/USD chart.</p><p><br /></p><p>In the European session this afternoon, the price showed a downward pattern towards the level reached yesterday at 1906.00.</p><p><br /></p><p><br /></p><p>The decline lower is expected to continue with the target still directed at the important concentration zone of 1900.00.</p><p><br /></p><p>Analysts expect that there will be an interesting reaction displayed in the price when the decline has reached that area.</p><p><br /></p><p>However, be alert if the price changes direction and makes an increase and crosses the MA50 barrier. This will be an early signal of a trend change.</p><p><br /></p><p>The price increase will return to the 1920.00 level and if broken higher, the price increase will continue towards 1930.00.</p>