Gold investors' hopes of seeing the yellow metal trade higher earlier in the week appear to have eased again.
The positive movement at the opening of the Asian session yesterday was only temporary when the price of gold fell more significantly in the New York session.
The US dollar which was seen to be strengthening at the beginning of the week yesterday has pushed down the price of gold after initially reaching the $2,400 level.
If you look at the movement on the XAU/USD chart which measures the value of gold against the US dollar, the price has been pushed down to reach the level of 2370.00.
However, an attempt to increase the price was shown again which reached the level of 2390.00 at the beginning of the European session today (Tuesday).
Although slightly above the Moving Average 50 (MA50) line on the 1-hour time frame on the XAU/USD chart, investors are still cautiously awaiting price action amid uncertainty ahead of this week's FOMC meeting.
To expect if the price increase continues successfully, the price will go back to the 2430.00 level that was tested in last week's trading.
That level will be the resistance that needs to be broken before suggesting the next price increase to break the record high again.
However, gold prices also remain at risk of falling if the value of the US dollar is strong in the market.
Failing to cross the 2400.00 level, the price could fall to the level like last week around 2353.00.
It is not impossible that a lower decline could happen with the price focus target re-directed at 2300.00.
