Gold traded slightly lower in value at the beginning of the week, not continuing the bullish pattern displayed at the end of last week.
This shows that gold failed to take advantage of the opportunity to rise higher when the US dollar was exhibiting a dismal performance yesterday.
The market is now awaiting the presentation of the monetary policy report by Federal Reserve (Fed) Chairman Jerome Powell before Congress today and tomorrow before the next focus is on the NFP employment report on Friday.
If you look at the XAU/USD price chart that measures the value of gold against the US dollar, the price hovering at 1858.00 shows a drop to around 1846.00 when closing the New York session.
Continuing the trade today (Tuesday), the slow price around 1850.00 is also struggling at the Moving Average 50 (MA50) level on the 1-hour time frame to signal the direction of further movement.
If the price continues to drop lower, the price drop is seen to return to the 1830.00 level.
Once there are factors for the bearish trend to occur more clearly, the price will be expected to continue its decline to the support target of 1800.00 again.
However, if the price increase successfully continues again, the price will reach a height of 1870.00 to test the resistance zone.
If it manages to break through that resistance, the rise will continue towards the 1900.00 level for the latest 5-week high.
