Gold investors were gloomy in this week's trade as the price of the yellow metal fell lower than the movement displayed last week.
After a surge in prices occurred when the reaction to the United States (US) NFP employment data report was published last Friday, prices began to show a change in direction of movement at the beginning of this week.
Examining the XAU/USD price chart which measures the value of gold against the US dollar, the price is seen to have slipped lower and passed the important 1980.00 zone.
Once the price is seen testing the Moving Average 50 (MA50) resistance level on the 1-hour time frame on the chart, a decline occurs after the resistance fails to be crossed.
Gold prices fell before closing the New York session at around 1977.00
The bearish movement of prices continued to continue trading in the Asian and European sessions today (Tuesday) past the 1970.00 level.
As expected by analysts before, if the price drop occurs the price will be seen to approach the RBS (resistance become support) zone at 1950.00 and the price reaction around that will be observed.
Lower declines will continue to occur if the attraction to gold assets fades and will reduce the gains made throughout October.
On the other hand, if the price of gold succeeds in reversing its direction to make an increase again, there is still the potential for the price to record the latest high level.
However, the resistance at the 1980.00 zone and the MA50 barrier will be a challenge for the price to overcome before continuing its climb higher.
Next, the concentration level of 2000.00 will be reached again after several times the price tested it but failed to break through.
