Gold trading showed a flat movement at the opening of the early week influenced by the fading momentum of the US dollar.
At the end of last week, the volatile movement of gold prices was witnessed as the market reacted to the United States (US) NFP employment report that had been published.
Additionally, investors remain scrutinized for developments in the war between Iran and Israel that could affect the appeal of gold as a safe-haven asset in a risky market environment.
Price movements are studied by investors through the XAU/USD chart which measures the value of gold against the US dollar.
In the past week, several attempts to increase the price of gold were seen to have stalled as far as the level of 2670.00 which was assessed as a resistance during price making.
However, until the beginning of the week, the price was flat around the 2640.00 level, making investors more cautious and waiting for the next indication.
The price movement in the Asian session this morning is still hovering around 2640.00, however, the price that is below the barrier line of the Moving Average 50 (MA50) in the 1-hour time frame on the XAU/USD chart gives a bearish signal.
The price dropped near 2630.00 at the beginning of the European session with the expectation that further decline will continue until the next session.
The price concentration zone if the decline continues after this is at 2600.00 which also showed an interesting reaction to the trading last September.
If it becomes clear that the price of gold has started its falling pattern, the next target will shift to 2500.00.
However, if gold still survives the fall, the expected price increase will once again test the resistance at 2670.00.
After successfully passing it, investors will start to put their faith in gold breaking new historical highs again.
