Gold investors began to get nervous when they saw the movement of the price of the commodity showing a further decline in trading today (Tuesday).
Concerns continue to surround the market with uncertainty looming as investors anxiously await the key results of this week's FOMC meeting.
It is difficult to expect an early prediction of the form of the statement that will be delivered by Federal Reserve (Fed) Chairman Jerome Powell following the mixed economic data.
Any decision made will affect the movement of the US dollar, as well as push the direction of the current movement of gold.
If you look at the XAU/USD chart which measures the value of gold against the US dollar, the price is still holding above the 2300.00 zone after last week the price plunged to that area.
However, the upside shown was weak and today, the price started to show a bearish pattern to re-approach the 2300.00 zone.
A clear price movement below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the XAU/USD chart gives a bearish signal for gold.
The 2300.00 zone as current support for the price will be observed when the price returns to test it after this.
If the penetration is lower, it is likely that last week's price plunge will continue again this week.
For an extended decline, the closest concentration level the price will target is seen at around 2270.00.
As for the expectation of a price increase if it happens anyway, re-crossing the MA50 barrier will see the price try to overcome last week's level around 2350.00.
Next, only a higher increase can be done by targeting the previous highest record at the peak of 2430.00.
