Gold trade is still struggling to continue its recovery as prices fell again during the last sessions last week.
Following the reaction of the United States (US) election event which has favored Donald Trump, investors have witnessed the beginning of a plunge in the price of gold on Wednesday.
Looking at the movement on the XAU/USD chart which measures the value of gold against the US dollar, the price has plunged to around 2643.00 before bouncing back on Thursday.
However, the price increase was limited to the level of 2710.00 only before starting to gradually decrease during last Friday's trading until it ended around 2685.00.
A bearish signal was observed at the opening of trading earlier this week when in the Asian session this morning (Monday), the price started to move below the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the XAU/USD chart.
The price then flattened at the 2670.00 level until it continued in the early trading of the European session.
The drop in gold prices is expected to continue to overcome the level reached last week before recording the latest 5-week low.
The target for the downside is towards the price support zone at around 2600.00.
However, if the price of gold manages to rise again after this, the previous level of 2710.00 will be the focus to be overcome.
The continued higher move is seen to go towards several higher targets before reaching the historical record at 2790.00 which has been recorded.
