Gold investors remained cautious at the opening trade earlier this week as there were still signs of price action pointing to pressure on the yellow metal.
The situation is increasingly uncertain ahead of several market focuses this week, particularly the presidential election event in the United States (US) which will take place on Tuesday.
In addition, the market's focus will also be directed to the FOMC meeting which investors are looking forward to to find out the latest interest rate cut decision to be implemented by the Federal Reserve (Fed).
These events are important to note and are expected to have a significant impact on the market including gold commodities.
Looking at the XAU/USD chart which measures the value of gold against the US dollar, last Thursday's significant plunge in price after hitting a record high of 2790.00, has given investors an early warning for a change in direction.
On Friday, the price tried to make an increase but failed to reach 2770.00 before retreating and ending the end of the week trading around the 2730.00 price support zone.
The gold price movement is now seen to have hovered below the Moving Average 50 (MA50) obstacle line on the 1-hour time frame on the XAU/USD chart, indicating a bearish movement.
If it breaks below the 2730.00 zone, the price of gold is likely to extend its downtrend with a target focused back on 2670.00.
However, if there is a rebound and the MA50 barrier is crossed, the price will face the resistance of 2770.00 to be tested before going higher.
If a strong increase is shown, the price of gold has the potential to break the most recent record which is currently being targeted by analysts to 2800.00.
