The hopes that built up for gold investors at the end of last week crashed again at the beginning of this week.
Last Friday, gold prices surged higher as the market digested the United States (US) NFP jobs report that had been published despite initially experiencing a brief fall.
Following the further decline of the US dollar, the price of gold was traded higher in the last session last week almost reaching $2,400.
However, the rising pattern did not succeed in continuing, instead the price of gold fell again on Monday yesterday.
The price movement situation is observed by investors on the XAU/USD chart which measures the value of gold against the US dollar.
Before the surge in the New York session last Friday, the price first dropped to the 2350.00 level and also tested the Moving Average 50 (MA50) support line on the 1-hour time frame on the chart.
Giving a bullish signal, the price has rebounded sharply to reach 2390.00 at the end of the last session.
Investors' expectations to see prices rise higher were misplaced when there was a decline again starting from the Asian session and worse in the New York session.
In addition to triggering a bearish signal by plunging below the MA50 line, the price has also returned close to the level before last Friday's spike.
Slow price movement resumed trading in the Asian session this Tuesday morning, hovering below the MA50 barrier around the 2370.00 level.
If the price drop continues after this, the expected area that will invite a price reaction is seen at around 2330.00
Next, there is a price support level at 2300.00 which will be tested after at the end of the last, the level managed to bounce the price up again.
However, if the price manages to rise again past the MA50 barrier, there is still the potential for last week's upward pattern to continue again.
Overcoming the level last Friday, the price will record the latest high level with the nearest target to be aimed at is 2400.00 before going to the level of 2430.00.
