Not a good start to the week for gold investors when they had to witness the price of the yellow metal drop to $2,600 yesterday.
However, analysts have already warned in advance about the risk of market instability at the close of trading in 2024.
The US dollar is showing initial strengthening before 2025 begins, which also puts pressure on gold, but price movements are seen to remain in a slow range.
After leveling off throughout last week, the price on the XAU/USD chart, which measures the value of gold against the US dollar, began to show a decline to the 2600.00 level in the New York session yesterday.
However, this level is seen as a support level that is tested before the price rebounds slightly to display a horizontal movement until the trading session ends.
The price movement below the Moving Average 50 (MA50) resistance line on the 1-hour time frame on the XAU/USD chart shows a bearish signal for gold.
Prices are flat above 2600.00 throughout the Asian session until the beginning of the European session, but price movements could be more active in the New York session.
If prices continue yesterday's pattern, prices that fall below the 2600.00 level could drag the decline lower.
Passing 2580.00 will record a new 7-week low for gold before targeting up to around 2530.00 for further declines.
Meanwhile, for the expectation of a price increase if it occurs, passing the MA50 barrier could push prices to continue rising above last week's level.
Then the zone between 2650.00 to 2670.00 will return to the focus for a price retest like in previous trading.
