GOLD Analysis – Gold Price Bounces Up After Failing to Break the $1,920 Zone

<p>&nbsp;The price of gold did not continue to decline further on Thursday's trading yesterday when the price was still hovering in the critical zone at $1,920.</p><p><br /></p><p>The US dollar is seen to be maintaining its strength but the momentum is fading and putting less pressure on gold prices as trading heads towards the end of the week.</p><p><br /></p><p>However, investors are still wary of any risk of volatile price movements that could occur at the end of this week.</p><p><br /></p><p>Observing the movement on the XAU/USD chart which measures the value of gold against the US dollar, the price that made a decline last Wednesday has tracked back to the 1920.00 level, but the price was flat around that throughout Thursday yesterday.</p><p><br /></p><p>Later in the trade in the Asian session this morning (Friday), the price made a slight increase above 1920.00 and was seen to have broken through the barrier level of the Moving Average 50 (MA50) on the 1-hour time frame on the XAU/USD chart and reached around 1927.00.</p><p><br /></p><p>This gives an early signal for a change in trend that could happen to the price of gold, but investors are still waiting for a clearer indication.</p><p><br /></p><p>If the price increase continues, the price will test the 1930.00 level first before continuing the climb to a higher level.</p><p><br /></p><p><br /></p><p>The 1950.00 zone awaits to be tested again if the bullishness continues after prices failed to break through it in last week's trade.</p><p><br /></p><p>However, if the price reverses to show a downward pattern again, a price movement below the 1920.00 level and the MA50 would suggest a more severe fall in gold.</p><p><br /></p><p>A drop in price can be expected to reach the 1900.00 level which is also the price focus level in the previous trading.</p><p><br /></p><p>If a further decline occurs, the support level at 1885.00 tested last August will be the next price target.</p>