The movement of gold prices at the beginning of the week yesterday was seen to stabilize horizontally above the $2,020 zone and did not continue to fall lower after the price slipped slightly at the close of last week.
Commodity market analysts still see risks for a fall in gold prices this week even as optimistic investors put expectations for further recovery following last week's price surge.
On the XAU/USD chart which measures the value of gold against the US dollar, investors are watching the movement that took place at the early opening of yesterday's week after a decline in the last session of last week reaching around 2016.00.
The price slightly increased in the New York session yesterday to the 2030.00 level, but was seen to be hindered by the Moving Average 50 (MA50) line on the 1-hour time frame on the chart which still shows a bearish signal for the price.
The price movement that continues today (Tuesday) remains flat below the MA50 barrier until the European session.
If the price continues to decline below the 2020.00 level, it will increase the tendency for the expected decline to occur towards the 2000.00 level.
A drop below the 2000.00 level will warn of danger for gold which can sink back to the 1980.00 base like the previous week.
But if the price manages to jump stronger after this, the initial challenge the price will have to face is in the 2050.00 zone.
If the resistance is successfully passed, the price increase can continue with the potential to reach 2070.00.
