Bad signs emerged in the movement of gold prices yesterday Tuesday, making investors uneasy.
Gold prices plunged rapidly to $2,900 in the New York session yesterday after several days of flat price trading at the peak.
Investors are watching for clearer indications of a change in the gold price trend after an initial signal for a change to bearish movement.
The XAU/USD price chart, which measures the value of gold against the US dollar, came into focus as the price clearly showed a plunge yesterday after moving horizontally above the 2950.00 zone from the opening of the week.
The price dropped to 2888.00 before bouncing back above the 2900.00 zone with price movements in the Asian and European sessions today (Wednesday) still remaining below the Moving Average 50 (MA50) resistance line on the 1-hour time frame on the chart.
With the bearish signal, the price tends to fall lower if the attraction to gold assets is fading.
If the price falls below the 2900.00 zone, it strengthens expectations for a price decline before testing the RBS (resistance become support) zone at 2880.00.
However, if the 2900.00 zone manages to prevent a price drop from occurring, investors are likely to see a return to the price increase towards the previously tested peak zone.
The zone around 2950.00 remains the main focus before a new record for gold prices is successfully broken again.
Can gold prices reach the $3,000 level before February trading ends?
