Gold investors are worried about the significant drop in the price of the yellow metal on Monday yesterday with a different price movement situation compared to last week.
Last week, the price of gold displayed an upward pattern throughout the week from the beginning of the first session until the end of the last session.
However, this week is a different story when the initial decline in price began at the opening of the Asian session yesterday before the significant price drop continued in the New York session.
A significant change in price direction can be observed on the XAU/USD chart which measures the value of gold against the US dollar.
The price made a plunge at the beginning of the Asian session from the high level of 2720.00 before ‘resting’ for a while after reaching around 2660.00.
After a weak rebound in price to the level of 2687.00, the price plunged again more severely in the New York session until it almost reached 2600.00 which is the price concentration zone.
The horizontal price movement above the zone continued trading in the Asian and European sessions today (Tuesday), but investors are preparing for more aggressive movements in the next session.
The price, which has now changed direction and is moving below the Moving Average 50 (MA50) resistance line on the 1-hour time frame on the XAU/USD chart, projects a lower downward trend.
If the price continues to plunge to penetrate below the 2600.00 zone, it is likely that the level reached on November 14 will be the focus again, near the 2540.00 zone.
For the expected price increase if a recovery occurs, the price is seen to head towards around 2650.00 to 2670.00 with the price reaction to be observed.
A higher increase beyond the MA50 will again provide relief to gold investors to expect a pattern like last week again.
