Smiling only for a moment, gold investors were again restless to see the situation that happened on the trading of the yellow metal at the beginning of the week yesterday.
At first there was a surprise when the price of gold soared at the opening of the Asian session with the price reaching the highest peak level in history around $2,140.
However, following that, the price of gold began to show a continuous fall to a drop of around $120 in just 1 day.
Investors watch price movements on the XAU/USD chart which measures the value of gold against the US dollar while evaluating the indicators present.
It can be observed that the price plunged significantly from the height of 2140.00 to penetrate the level of 2070.00 which is the height reached at the close of trading last week.
The continued and more severe plunge in the New York session saw the price break through the next focus level at 2050.00 and finally reach around 2020.00.
After that, the price started to move slowly and bounced a little at the close of the end of the New York session and the slow price movement continued trading in the Asian and European sessions today (Tuesday) above the 2030.00 zone.
With the price's frantic fall in addition to the movement below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the XAU/USD chart, it gives a bearish signal to investors.
If the price drop continues until the next session, the price of gold will reach the concentration level of 2000.00 again.
In fact, it is not impossible for the price to continue to fall even worse if investors act to take profits on previous gold trades.
On the other hand, if the price of gold manages to bounce back, breaking through the MA50 barrier and the 2050.00 level will be a positive sign for the price to move higher again.
For a bullish movement, the 2050.00 level needs to be passed first before focusing on the 2070.00 level to be achieved like last week's increase.
