The price of gold fell back down again at the opening of trading early yesterday after investors saw a surge last Friday.
The effect of the United States (US) NFP employment report in the last session last week which made the US dollar weaker has given room for gold prices to rise.
However, the space was closed again following a statement by a member of the Federal Reserve (Fed) who was seen supporting the US dollar to move strongly.
Governor Michele Bowman expressed the view that additional interest rate hikes would need to be implemented by the central bank to bring inflation down to the 2% target level.
If some other statements present also support the situation, the US dollar is likely to strengthen further towards the release of US inflation data which is predicted to increase again.
This is putting more pressure on gold and prices could fall lower this week.
On the XAU/USD chart which measures the value of gold against the US dollar, the price is seen to have made a decline from the level of 1945.00 at the opening of the first session of the week until it reached 1932.00 at the New York session yesterday.
Continued price movement today (Tuesday) moving below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the XAU/USD chart is warning gold investors of a bearish move.
The price could fall lower in the following sessions overcoming last week's level with the target to test the 1920.00 level.
A break lower would expect a drop in the price of gold down to the important 1900.00 zone.
However, if there is a surge again, the price is expected to go back to the 1950.00 level for the price to recover from last week's fall.
A higher rise for the price of gold is seen to approach the previous concentration levels such as 1970.00 and the 1980.00 resistance zone.
