Gold trading disappointed investors in last weekend's trading when it saw prices continue to fall after previously reaching a high in November.
With the pattern displayed, investors did not place high hopes for the yellow metal's performance this week.
This is due to the expected risky and uncertain market situation ahead of important high-impact economic data and the results of central bank meetings that could disrupt market movements.
However, it is not impossible that the situation that has occurred could benefit gold by attracting it back to rise again.
Examining the XAU/USD chart that measures the value of gold against the US dollar last week, the price initially reached a height of 2720.00 as tested in November.
However, the same situation was shown when the gold price still failed to survive and continue to rise, instead plunging back down.
The decline continued until the last trading session of the week reached a level of around 2650.00.
The price movement slowed around that at the opening earlier this week, with a tendency for further declines following a bearish signal observed when the price remained below the Moving Average 50 (MA50) resistance line on the 1-hour time frame of the XAU/USD chart.
If extended lower, the price is expected to head towards the 2600.00 focus zone which will invite an attractive price reaction in the vicinity.
The price reaction will signal investors for the next gold trading direction.
On the other hand, if the price manages to recover, the immediate challenge is for the price to overcome the 2650.00-2670.00 zone before showing a signal for a higher increase.
Successfully breaking the MA50 barrier would expect the price to head back to the highs of the 2620.00 zone which remains an important resistance that is still impervious to being broken.
