Investors are watching the price of gold move in a horizontal zone last week with the resistance zone at $2,940.
Previously, gold had managed to maintain a price increase pattern for 7 consecutive weeks until last week with the latest all-time high reached at $2,942.
However, there were price fluctuations last week as investors watched important indicators in the market including the latest United States (US) inflation data.
Examining the movement of the XAU/USD chart which measures the value of gold against the US dollar last Friday, the price almost matched the previous record high, but failed and retreated back down.
The price showed a plunge from the 2940.00 zone to penetrate the focus level at 2900.00.
At the end of the last session for the week, the price reached around 2880.00 which is seen as the RBS (resistance become support) zone.
At the opening of the Asian session this morning (Monday), the price was seen bouncing back from the RBS 2880.00 zone and testing the 2900.00 level again.
The price movement below the Moving Average (MA50) resistance line on the 1-hour time frame on the XAU/USD chart shows an early signal for a bearish movement for gold.
If the price fails to break through the resistance at 2900.00, a lower decline may occur which will then break through the RBS 2880.00 zone.
Further, the decline in gold prices can be expected towards around 2850.00 up to 2800.00.
However, if the price is able to show its strength again, the price surge is likely to reach the resistance zone at 2940.00 again.
If it breaks through, the all-time high for gold prices will be recorded again.
