The gold price movement pattern began to turn gloomy in the opening trade early in the week yesterday, showing a decline after last week's excellent performance.
Last Friday, gold prices surged after the market examined the latest United States (US) NFP employment report published.
The price movement was observed on the XAU/USD chart, which measures the value of gold against the US dollar.
After the reaction to the NFP report, the gold price reached a new high in the 4-week trading period, reaching around 2697.00.
However, the upward price pattern failed to continue at the beginning of this week when on Monday yesterday, the price dropped below the 2670.00 zone.
Reaching around 2660.00 at the end of the New York session, the price rebounded in the Asian session this morning to around 2670.00 again.
The price movement was flat until the European session below the Moving Average 50 (MA50) resistance line on the 1-hour time frame on the XAU/USD chart, giving a bearish signal.
If the price falls from the 2670.00 zone, the decline will exceed the level reached yesterday before recording a lower level.
Further price falls can be expected up to around 2600.00 which has been the focus zone before.
However, if the price is able to rise again from the 2670.00 zone, it will pass the MA50 barrier and will again show the potential to continue last week's upward pattern again.
The target for the price is to exceed the height of the 2700.00 resistance zone and record the latest 5-week high.
