Gold investors are on alert as there are signs for a fall in the yellow metal's price to take place after posting a strong surge at the close last week.
Affecting gold's current trade, developments regarding the mega stimulus plan by China as the largest consumer country are also being watched by investors.
Investors have yet to place confidence in China's plan while the US dollar remains hovering at a 2-month high, limiting the rise in gold prices.
Examining the movement on the XAU/USD chart which measures the value of gold against the US dollar, prices were slightly lower in continued trading today (Tuesday) after yesterday's price drop.
On Monday yesterday, the price continued to rise to a height of around 2666.00 before declining in the New York session.
Flattening early in the Asian session this morning around 2650.00, the price then showed a decline to move below the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the XAU/USD chart.
If the price of gold falls lower after this, the expectation is to head back to the current support zone at 2600.00.
If it breaks through, the price can extend the decline to reach a level around 2580.00 or lower.
Meanwhile, if the price increase continues again, the high level reached yesterday will be attempted to be overcome.
Next, the price will focus on the 2670.00 resistance zone tested on the previous week's trade which is still tough to break through.
