Gold is starting to show signs of an early decline in price after no longer being in the flat zone last week.
Market volatility influenced by President Donald Trump's administration policies and the impact on global markets continues to affect investor sentiment.
Selling pressure was seen in early trading yesterday, seeing gold prices move below the important $2,900 level.
Observing the movement on the XAU/USD chart, which measures the value of gold against the US dollar, the price fell in the New York session yesterday, passing the 2900.00 level and reaching the 2800.00 zone.
However, the price showed an interesting reaction in the zone with a rebound in trading that continued into the Asian session this morning (Tuesday).
The price returned to near the 2900.00 level to be tested until the opening of the European session.
If the price does not succeed in continuing to rise higher, the gold price is at risk of experiencing further declines.
The 2880.00 zone will be tested again before an extended decline can be expected to head back up to 2800.00.
Conversely, if the price bounces back above 2900.00, there is potential for gold prices to move higher.
Resistance at 2930.00 needs to be broken before prices can chart new highs towards gold's all-time high at 2950.00.
