GOLD Analysis – Gold Has Reached $1,885, Next Will Head to $1,870?

<p>&nbsp;As expected by analysts and further weighing on gold investors, the price of the yellow metal further declined to lower levels on Thursday yesterday.</p><p><br /></p><p>The US dollar is still attracting investors in a risky market environment, compared to gold which is also categorized as a safe-haven asset.</p><p><br /></p><p>Price movements can be observed on the XAU/USD chart which measures the value of gold against the US dollar.</p><p><br /></p><p>The price hovering slowly since the Asian session above the 1890.00 level then showed a surge in the European session continuing the opening at the beginning of the New York session.</p><p><br /></p><p>After testing the important level at 1900.00, the price is seen to have failed to overcome the Moving Average 50 (MA50) obstacle level on the 1-hour time frame on the XAU/USD chart, signaling a still bearish movement.</p><p><br /></p><p>The bearishness was again exhibited towards the end of the New York session with the latest low recorded at 1885.00.</p><p><br /></p><p>The price rebounded slightly from that level to continue trading today (Friday) and remained hovering below the MA50 barrier until the European session.</p><p><br /></p><p><br /></p><p>The price movement is expected to be more vigorous in the next session as the close of trading this week.</p><p><br /></p><p>If the price maintains a bearish pattern, the decline in price is likely to break through the current support of 1885.00 before extending the decline lower.</p><p><br /></p><p>The target is to go to the next concentration level which is at 1870.00.</p><p><br /></p><p>However, if the price surges past the MA50 barrier and breaks through the 1900.00 level, investors should be wary of early signs of a change in the gold price trend.</p><p><br /></p><p>The rise can continue to the previous concentration level which is at 1920.00 which still remains a resistance for the price.</p>