Gold trading failed to shine at the opening earlier this week, instead the price is seen to be under pressure after experiencing a significant fall at the close of last week.
Investors will be waiting for the latest indications this week for the movements of the US dollar that will influence the current gold price changes.
The focus is on the United States (US) economic growth report for the second quarter as well as the PCE price index at the end of the week.
Last week, the price of gold managed to break the record high in history reaching the level of $2,483, but towards the end of the week the price started to show signs of a change in direction.
If observed on the XAU/USD chart which measures the value of gold against the US dollar, the price plunged from the 2483.00 level to reach 2394.00 at the end of last week's session.
The price movement pattern was slower at the beginning of the week yesterday, pressured to fall slightly to the level of 2384.00 before rebounding slightly.
The price is slowly hovering in the 2390.00 zone in today's trade (Tuesday) with the risk of a lower fall possible in the New York session tonight.
The price movement also remained below the Moving Average 50 (MA50) obstacle line on the 1-hour time frame on the XAU/USD chart indicating that the price trend is still bearish.
The drop in the price of gold if it continues after this is seen to reach up to around 2350.00 which was the price support during trading in early July.
However, if there is a surge in prices after this, crossing the MA50 barrier will be an early signal for prices before the increase will reach the 2430.00 level.
In turn, further gains in prices could lead back to the levels reached last week to challenge the record highs.
