Gold created a new record at the end of last week when the price increase continued to exceed the target level of $2,800.
In the final sessions last Friday, the price of gold reached a new all-time high of $2,817, surpassing the previous record of $2,790 recorded in October 2024.
Investors observed price movements on the XAU/USD chart that measures the value of gold against the US dollar.
After reaching the high of 2817.00, the price of gold decreased slightly to around 2800.00 to close the last trading session of the week.
The price resumed the opening of the first session earlier this week at 2800.00 before displaying a downward pattern.
Approaching the level of 2770.00, the price rebounded slowly to continue trading at the opening of the European session.
Triggering a bearish signal earlier this week, the decline in gold prices was seen to have begun moving below the Moving Average 50 (MA50) resistance line on the 1-hour time frame on the XAU/USD chart, which is likely to end the previous upward trend.
If the price fails to re-exit the 2800.00 level, investors will watch for clearer signs of a decline.
A drop below the 2770.00 level will trigger expectations of a further decline in gold prices to lower levels.
The target for the price drop is towards around 2720.00, among the closest focus zones that are the price targets as of last January's trading.
However, if gold remains strong as an attraction in the market, the price could fly back above 2800.00 and potentially set a new record.
