Although the movement is not very significant, it is enough to upset gold investors again when they see the downward price pattern continue again yesterday.
After leveling off at the beginning of the week, the price of gold on Tuesday yesterday fell lower which is seen to continue the fall that was displayed in the trading at the end of last week.
With market uncertainty expected this week in the face of high-impact data and central bank meetings, especially the FOMC, the yellow metal is also not immune to current risks.
Examining the price movement on the XAU/USD chart which measures the value of gold against the US dollar, the price is feared to fall lower this week based on the pattern displayed in the change in direction last week.
Analysts still see a bearish signal for the price of gold which remains moving below the Moving Average 50 (MA50) resistance line on the 1-hour time frame on the chart.
Yesterday's decline reached around 2633.00 before a slow rebound continued into the Asian session this morning (Wednesday), but stalled at around 2650.00 and failed to break through the MA50 barrier.
Prices are likely to continue their decline lower with a target of reaching around 2600.00.
An interesting price reaction is expected around this zone for investors to watch for clues as to the price's further direction.
However, if prices surge above 2650.00, the 2670.00 level will need to be broken for prices to exit this important zone.
Further higher gains can be expected for prices to reach a high of around 2720.00, which is a key resistance zone tested last week.
