Gold broke the recent all-time high at the beginning of the week yesterday reaching the $2,450 level.
However, the price pullback made investors cautious from the excitement before that.
The change in the movement pattern of the US dollar compared to last week has hindered the momentum of the gold price increase.
It can be observed on the XAU/USD chart that measures the value of gold against the US dollar, the price managed to reach a height of 2450.00 but then fell back below the level of 2430.00.
The decline reached around 2407.00 before bouncing back to test the 2430.00 zone at the end of the New York session.
Continuing on this morning's Asian session trading (Tuesday), the price is seen to fail to be above the 2430.00 level after testing it before showing a decline to around 2407.00 again.
Those important levels were observed in addition to the price starting to move below the Moving Average 50 (MA50) line on the 1-hour time frame on the XAU/USD chart as an early warning sign of a drop in gold prices.
If the price gets pressured down, the expectation is for the price to return to the previous concentration zone around 2375.00.
Lower Junam will signal a clear change in the bearish trend for gold with expectations for the price to reach around 2300.00.
However, if the price manages to gain the strength to jump again, passing 2430.00 will increase the potential for the price of gold to reach the latest record high of 2450.00.
In fact, the price of gold can be driven higher to a new record with some analysts targeting up to the 2500.00 level.
