Gold investors this week had to turn a blind eye to the continued fall in prices for the commodity leading up to the end of the week trade.
Although the turmoil in the Middle East remains to be observed, the attraction to gold assets is beginning to retreat at this time with the movement of the US dollar playing a role in influencing the price of gold.
The strengthening of the US dollar gradually increased supported by the release of the latest economic data from the United States (US) which reduced expectations for interest rate cuts by the Federal Reserve (Fed).
The stronger the value of the US dollar, the greater the pressure on gold.
The price movement on the XAU/USD chart which measures the value of gold against the US dollar is observed with the direction of the price having clearly changed.
At the beginning of the week, the price has managed to record the highest level in history reaching a height of 2450.00 and then it has returned to show a decline again.
The decline crossed several important zones such as 2400.00 and 2370.00 and the bearish pattern continued until yesterday's New York session.
Price movement was slow in the Asian session this morning and as of the beginning of the European session, the price hovered around the 2340.00 level.
Further declines will be expected for the price of gold to re-approach the 2300.00 zone which was the focus of the previous trade.
However, if the price increase occurs again, the 2370.00 zone is seen as an initial resistance that will be tested before a trend change signal is identified.
