GOLD Analysis – This Week Gold Falls Again, About to Reach $1,900?

<p>&nbsp;The price of gold experienced a sharp decline in trading on Tuesday yesterday as the US dollar showed its strength again.</p><p><br /></p><p>As gold assets lose their appeal, the US dollar is in demand in a market sentiment that is reassessed as risky.</p><p><br /></p><p>Analysts focused on concerns over the weak growth of economic activity in China and Europe supported by the latest published data.</p><p><br /></p><p>The current market sentiment will continue to be monitored with the current advantage still favoring the US dollar which is expected to maintain its strengthening.</p><p><br /></p><p>On the XAU/USD chart which measures the value of gold against the US dollar, the price which had reached the high level of 1950.00 last week started to display a different movement pattern this week.</p><p><br /></p><p>The price decline was displayed yesterday with a bearish signal where the price remained moving below the Moving Average 50 (MA50) barrier level on the 1-hour time frame of the chart.</p><p><br /></p><p>The decline to the 1926.00 level until the end of the New York session is seen to continue again in the European session today towards the important zone of 1920.00.</p><p><br /></p><p><br /></p><p>If the zone is also broken, this will be a critical indication that the price is more likely to fall lower.</p><p><br /></p><p>The price could retrace to the 1900.00 level and the price reaction will be watched for an indication of the direction of further movement.</p><p><br /></p><p>However, if the price of gold reverses to make an increase again, passing the 1930.00 zone will see the price try to break through the MA50 barrier.</p><p><br /></p><p>If it happens, the price increase will go back to the resistance level reached last week which is the height of 1950.00.</p>