Investors witnessed an attractive price movement for gold trading on Tuesday yesterday which was influenced by current issues that are in focus.
Gold has managed to reach a new high of $3,500, creating a record high for the yellow metal.
However, from yesterday's European session, gold prices began to show a decline from their peak until the close of the New York session.
This is due to the recovery of the global market following reports of trade negotiations between the United States (US) and China going smoothly.
In addition, President Donald Trump said that he does not intend to remove Federal Reserve (Fed) Chairman Jerome Powell after several previous threats.
The change in 'risk-on' sentiment caused investors to shift towards high-yielding assets and release gold holdings.
On the XAU/USD chart which measures the value of gold against the US dollar, the price showed a decline from a height of 3500.00 to 3370.00 at the close of the New York session.
The price opened lower at the Asian open around 3320.00 and made an early increase to the 3385.00 level.
However, the failure to break through the Moving Average 50 (MA50) barrier on the 1-hour time frame on the XAU/USD chart indicates a bearish signal for gold.
The price bounced back down in the European session, breaking through the previous Asian open price towards around 3300.00.
A lower decline is expected in the next session with a target in the 3240.00-3220.00 zone.
But if the price manages to recover and make another increase, the 3380.00 level is likely to be tested again.
If the increase continues higher and breaks the MA50 barrier, the price has the potential to challenge the current record at the peak of 3500.00.
