Gold traded on a gloomy note at the opening of the market earlier this week as the price of the yellow metal slipped below the $2,000 mark again.
This was driven by the strengthening shown by the US dollar following the reading of the US NFP employment data report which was published well last Friday.
Thus, the strengthening of the US dollar put a little pressure on gold, which has risen brilliantly in the past week.
The price movement translated on the XAU/USD chart which measures the value of gold against the US dollar saw the downward trend at the end of last week continue again yesterday.
Adding to the anxiety of investors, the price of gold began to move down below the 2000.00 level with a bearish signal that the price moved below the barrier level of the Moving Average 50 (MA50) on the 1-hour time frame on the XAU/USD chart.
However, resuming trading today (Tuesday), the price rose again and struggled to cross the 2000.00 level as well as testing the MA50 barrier at the beginning of the European session.
If the excellent price breaks through the following barrier, the expectation is more positive for the price to continue its rise again towards the height reached last week around 2032.00.
If it succeeds in continuing to rise higher, the price will continue to hunt for the latest record high since the March 2022 trade which previously reached the level of 2070.00.
However, on the other hand, if the price of gold plunges again below the 2000.00 level, the bearish pattern will be maintained with the price target reaching the support zone at 1950.00.
Next, the focus level at 1900.00 will be expected to be the next focus if the price of gold continues to plunge to the bottom.
