Restoring the high hopes of gold investors as yesterday's golden rays dimmed again at the end of the day.
The value of the yellow metal fell back after initially hitting a fresh 5-month high.
It became an obstacle for gold prices to jump higher when the US dollar strengthened again in the New York session yesterday, supported by encouraging data from the United States (US) service survey.
This has rekindled expectations for the Federal Reserve (Fed) to continue their previous monetary policy tightening.
The effect of the strengthening of the US dollar has depressed the price of gold, falling significantly in the New York session yesterday.
Examining the XAU/USD price chart which measures the value of gold against the US dollar, the price initially started trading in the Asian session with positive gains reaching a recent 5-month high at 1810.00.
Failing to sustain the gains, the price has since plunged all the way to the 1766.00 level!
This situation has dashed investors' hopes of placing higher expectations for gold with indications of a trend change.
Indicating bearish trend movement, the price has dropped further below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the XAU/USD chart.
Slow price action with weak upside is seen in the Asian session this morning (Tuesday) to around 1775.00.
The price is seen to continue the decline to test the RBS (resistance become support) zone at 1760.00.
If the lower decline is successfully continued, the price that passes the RBS zone of 1760.00 is likely to head towards around 1733.00 which was the price support level during last November's trading.
