The decline in gold prices at the close of last week's trading continued at the beginning of this week to reduce the profits that had been made.
If we look at last week, the opening of 2025 was excellent for gold when the price showed an increase from the $2,600 zone.
However, the US dollar, which is expected to continue strengthening at the beginning of 2025 trading, could put pressure on the gold price.
Investors are watching the current price movement on the XAU/USD chart, which measures the value of gold against the US dollar.
The price increase from the 2600.00 level reached a high of 2665.00 at the end of last week, just short of touching the target at 2670.00.
The price retreated again in the last sessions of last week to drop to around 2640.00 and showed a bearish signal when it was below the Moving Average 50 (MA50) line on the 1-hour timeframe of the XAU/USD chart.
Continuing the opening earlier this week around that, the price was then seen to decline lower to surpass 2630.00.
This shows a bad sign for gold which tends to continue the bearish trend movement.
If the price continues to decline lower, the support at 2600.00 is seen to be the focus for retesting.
However, if the price manages to bounce back, the price increase will need to surpass the MA50 barrier before giving a more positive signal.
For a higher increase, the target this week is to surpass the resistance at 2670.00 after last week failed to do so.
