It wasn't a good opening for gold trading earlier this week when prices showed a retracement.
Last week, gold managed to shine at the end of the week driven by the weakening of the US dollar following the dismal economic data of the United States (US) published.
At the beginning of this week, the depreciation of the US dollar continued, but gold failed to maintain its rising price pattern.
Investors are also cautiously awaiting the US inflation report this week for a clearer picture of the market situation.
Examining the XAU/USD price chart which measures the value of gold against the US dollar, the price last Friday reached a height of 2378.00, but the increase did not continue yesterday.
In fact, the price drop shown has returned to show that the price is below the Moving Average 50 (MA50) obstacle line on the 1-hour time frame on the chart, signaling the beginning of a bearish trend change.
Slow movement around 2340.00 today (Tuesday) with the expectation that the price drop will continue following yesterday's pattern.
The price is expected to return to the support zone near 2300.00 which has successfully supported trading last week.
If it breaks lower down, the price will go to the next concentration zone around 2270.00.
However, if the price bounces back past the MA50 barrier line, it will again give relief to gold investors for the expectation that the price will rise again.
Last Friday's high level is likely to be overcome before the price records the latest high level towards the highest record target of 2430.00.
