Gold showed a dismal performance in the opening trade earlier this week, going against the direction of the movement last week.
Last Friday, the price of gold rose to a high of $2,785, almost touching the all-time high of $2,790 reached in October 2024.
The continued price increase was driven by the depreciation of the US dollar, which opened up space for the value of gold to increase.
However, investors remained cautious while watching the development of the transition of administration in the United States (US) led by President Donald Trump and having an impact on the market.
Price changes were examined on the XAU/USD chart, which measures the value of gold against the US dollar.
At the end of the last session last week, the price leveled off at 2770.00 before closing trading around that level.
Starting trading in the Asian session this Monday morning, the price showed a decrease from the level of 2770.00 to around 2550.00 when entering the European market session.
The decline also saw the price begin to fall below the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the XAU/USD chart, triggering an early signal for a bearish move.
If the price movement pattern this week changes, investors will see an initial decline in price towards the RBS (resistance become support) zone of 2720.00.
Continuing to decline lower beyond that zone, the price will head towards the 2670.00 level that was the focus before.
However, if the price continues the upward pattern of last week, a new record for gold can be achieved again after the increase passes the important level at 2770.00.
For the continued upward target for a new ATH record for gold, the focus level is at 2800.00.
