As investors had feared, gold continued its decline in continued trading earlier this week after last week's negative signal.
This follows the United States (US) NFP employment report which was published with an encouraging reading last Friday, making the US dollar stronger and also putting pressure on gold prices.
This situation is expected to continue with the tendency for the US dollar to continue to show excellent performance this week.
On the XAU/USD chart, which measures the value of gold against the US dollar, the price plunged last Friday below the 2050.00 level up to the 2030.00 zone.
Trading resumed on Monday yesterday, the price dropped lower to reach around 2015.00 surpassing the price movement throughout the last week.
However, the price bounced back to the 2030.00 zone in continued trading today (Tuesday).
Gold price movements are still seen moving in a bearish trend below the Moving Average 50 (MA50) obstacle line on the 1-hour time frame on the XAU/USD chart.
Lower declines are expected if prices fail to break above the 2030.00 zone.
The 2015.00 level that was reached yesterday is likely to be breached again before the price decline continues towards the concentration zone at 2000.00.
However, if the price of gold successfully jumps past the 2030.00 zone, the MA50 barrier will also be overcome and this will be an early signal for a change in the bullish trend.
The price increase is likely to go towards 2050.00 to display a reaction before the higher target will move at 2070.00 if the increase is successful.
