GOLD Analysis – Danger if Gold Falls Below the $2,070 Level!

<p>&nbsp;The bright rays of gold that shined this week were slightly dimmed by the depreciation that occurred in Thursday's trading yesterday.</p><p><br /></p><p>The price of gold has managed to reach a 3-week high but is starting to show a decline and is warning of a change in price direction at the close of this 2023 trade.</p><p><br /></p><p>The situation that occurred was driven by the recovery in the US dollar currency following the analyst's assessment of profit taking activity on previous US dollar sales positions.</p><p><br /></p><p>Examining the XAU/USD chart which measures the value of gold against the US dollar, the previous price maintained a continuous rising pattern until yesterday's Asian session reached a height of 2088.00.</p><p><br /></p><p>However, in the European and New York sessions yesterday, the price drop started again, seeing the price drop past the 2080.00 and 2070.00 levels.</p><p><br /></p><p>It becomes an early signal for a bearish change for gold when the price starts to move below the Moving Average 50 (MA50) obstacle line on the 1-hour time frame on the XAU/USD chart.</p><p><br /></p><p>The Asian session this morning (Friday) showed a slow rise in price past the 2070.00 level again, but it was still seen to be stagnant under the MA50 barrier until the European session.</p><p><br /></p><p><br /></p><p>If the following barrier fails to be cleared, the price is likely to continue yesterday's decline below the 2070.00 level again.</p><p><br /></p><p>Next, the target level to aim for on the downside is around 2050.00.</p><p><br /></p><p>Meanwhile, for a higher increase, if the price of gold recovers, it will cross the 2080.00 level and reach the height reached in the Asian session yesterday.</p><p><br /></p><p>In fact, the price of gold may continue to rise to its latest high for the close of this 2023 trade.</p>