Gold trading was dismal at the opening of the week yesterday with the pattern of increasing prices last Friday not continuing.
Recovering global market sentiment makes it difficult for gold prices to rise as the appeal of safe-haven assets declines.
In addition, the US dollar currency which is expected to continue to move strongly this week will be a factor putting pressure on the current gold trade.
Observing the price movement on the XAU/USD chart which measures the value of gold against the US dollar, the high level of 2336.00 on last Friday's trading failed to be reached again on Monday yesterday.
On the other hand, the price went down to around 2310.00 in the New York session yesterday before rising slightly until continuing to the opening of the Asian session this morning (Tuesday).
The price slipped back below the Moving Average 50 (MA50) line on the 1-hour time frame on the XAU/USD chart at the start of today's European session to signal a bearish movement for gold.
The price drop is expected to pass yesterday's level before returning to last week's focus zone of 2300.00.
For further declines, the price will target the zone around 2270.00 to record a recent 11-week low.
However, if the price manages to bounce back after this, the initial target is to overcome last week's highs.
Next, the increase can be targeted back to the height of 2380.00 which is seen as an obstacle for the price test.
