Gold trading at the end of last week showed early warning signs to investors for the possibility of a major fall.
This follows a drop in gold prices after hitting an all-time high last week reaching a high of around $2,222.
The change in the perspective of the interest rate landscape after the Swiss National Bank (SNB) acted to lower its interest rate, has triggered a small panic in the market.
The US dollar as a safe-haven currency benefited from the risky market environment that simultaneously pressured gold trading.
On the XAU/USD price chart which measures the value of gold against the US dollar saw a decline again from the highest level reached.
After the price dropped back below the 2200.00 level, the price movement was again seen hovering below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the chart showing a bearish signal.
The lowest level reached in the last session last week was around 2157.00.
Trading that continued at the opening earlier this week was seen to remain hovering around last week's close with gains in the Asian session only reaching 2178.00 and failing to break through the MA50 barrier.
The decline lower is expected to continue to test the price support zone at around 2145.00.
If the price breaks through lower to the bottom, the price will continue to decline to the target of 2100.00 or 2080.00.
Meanwhile, if the price increase is successfully displayed again, the price that crosses the MA50 barrier will try to return to the 2200.00 level.
Further, if there are more clear bullish signs, the price of gold has the potential to break the latest record again after that.
