Gold investors' anxiety eased slightly at the beginning of the week yesterday when the downward trend in the yellow metal's price that had been displayed at the end of last week began to stop.
Instead, price movements leveled off slowly yesterday while investors were still preparing to anticipate the turmoil that would hit the market this week with a calendar packed with important data and events.
Mixed data published at the beginning of the week failed to drive a clear direction for the US dollar, thus affecting the gold trading journey.
The XAU/USD price chart, which measures the value of gold against the US dollar, exhibited a flat movement yesterday.
After the price opened around 2650.00 in the first session of this week, the slow price increase was seen to reach around 2664.00 before retreating back to the previous opening level.
However, the significant price drop like at the end of last week did not occur, providing temporary relief to investors who expected the gold price to fall again this week.
However, the risk of a fall in gold prices still exists as the price movement remains below the Moving Average 50 (MA50) resistance line on the 1-hour time frame on the XAU/USD chart, indicating a tendency for the price to move downwards.
Until the continuation of the Asian session and the beginning of the European session today (Tuesday), the price is still slowly hovering around 2650.00.
Prepared for the continued fall, investors will expect the gold price to head towards around 2600.00 which is seen as the focus zone for the price.
On the other hand, if the gold price soars after this, surpassing the 2670.00 level will push further increases towards the target at a height of 2720.00.
The zone is a resistance that was tested last week and also in trading last November, but is still immune to being broken through.
