Gold showed stable trading to start the December opening early this week as investors remained cautious awaiting the latest market clues.
Investors were a little worried early in the Asian session yesterday as gold prices showed a decline before rebounding in the European session.
The strengthening of the US dollar early in the week was seen to put some pressure on gold as the market was digesting reports regarding Donald Trump's announcement of 100% tariffs on countries that turned away from the US dollar.
Examining the current price movement on the XAU/USD chart which measures the value of gold against the US dollar, the price of gold is seen to remain stable for the early opening of this week.
Yesterday's price drop reached around 2622.00 before bouncing back to the 2650.00 level.
The Moving Average 50 (MA50) resistance level on the 1-hour time frame on the XAU/USD chart is seen to be constraining further advances before the price leveled off in the New York session, hovering around the 2640.00 level.
The price remained flat around the same level and was also seen to test the MA50 resistance to continue trading in the Asian session and early European session today (Tuesday).
If the price increase remains blocked, a decline could occur for the price to re-approach the current support at 2620.00.
Next, the price will continue to decline to the 2600.00 focus level which is expected to display an interesting reaction around the zone.
However, if the gold price manages to jump out of the horizontal movement, the resistance is in the zone between 2650.00 to 2670.00 to be overcome.
After success, only then will investors be convinced of a higher increase with the price target to head to a height of 2720.00.
