Disappointment once again appeared on the faces of gold investors as they saw the value of the yellow metal plummet at the close of trade last week.
Gold failed to maintain the positive pattern formed since the beginning of the week when the strengthening of the US dollar has again pushed its price down.
The United States (US) manufacturing and services PMI data report published for June recorded encouraging readings that beat forecasts.
It can be observed that the price direction changes again on the XAU/USD chart which measures the value of gold against the US dollar.
Initially the price was hovering at a high of 2368.00 in the European session on Friday which was the highest level for the 2-week trading period.
However, a significant price plunge occurred in the last session of the week, which saw the price plunge to 2317.00.
The price plunge broke through the Moving Average 50 (MA50) support line on the 1-hour time frame on the XAU/USD chart warning a bearish move to begin.
The slow movement of gold prices continued the opening trade of the beginning of the week with a slow increase in the price in the European session today (Monday) to around 2330.00.
The price drop is expected to continue in the following sessions to surpass the level reached at the end of last week.
The target is for the price to return to the 2300.00 zone and the price reaction around that will be evaluated as an indication of the direction of further movement.
For the expectation of upward price movement, the MA50 resistance must be passed for investors to be more confident that the increase can continue again.
Last week's highs will be a challenge for price to overcome before heading towards the 2380.00 focus zone.
