As investors feared, the price of gold fell again at the start of trading at the beginning of the week yesterday.
The strengthening of the US dollar is a factor that pressures the price of gold to trade to a lower level below $1,920.
If the situation continues, the price of gold could fall even worse this week but investors remain cautious awaiting the latest data to be published.
While waiting for the United States (US) economic growth data on Wednesday, the US consumer confidence survey will be watched first tonight.
Judging the price movement on the XAU/USD chart which measures the value of gold against the US dollar, the price failed to sustain above the 1920.00 level.
The weak price increase in the European session yesterday only reached the level of 1927.00 before the price then plunged in the next session.
The decline broke through the 1920.00 level and reached around the 1915.00 level at the end of the New York session.
The price movement remains with a bearish signal that is below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the XAU/USD chart.
The drop in gold prices continued today (Tuesday) until around 1910.00 at the beginning of the European trading session.
With the expectation that the decline will continue, the target level for the price remains at 1900.00 which will be tested.
If the price still penetrates downwards, the support level in August trading which is 1885.00 will be the next focus.
However, if the price of gold manages to rise again, the 1920.00 level needs to be passed as an initial resistance before signaling a trend change.
After also passing the MA50 barrier, the price of gold will recover to continue its rise to around 1930.00.
If you stay with the bullish pattern, the price can reach up to the target of 1950.00 which is an important resistance zone for the price in the previous trading.
