Gold trading remained gloomy at the opening of the early week yesterday following a significant price drop at the close of last week.
From a peak of $3,167 recorded as the latest record high, the price of gold has plunged back to the $3,000 zone.
Investors are starting to be wary of the price change shown on the XAU/USD chart which measures the value of gold against the US dollar.
If observed at the opening of the Asian session yesterday, the price fell to around 2970.00 before quickly rebounding to the 3055.00 level.
After briefly leveling off in the European session, the price of gold finally failed to fall below the 3000.00 zone again in trading that continued into the New York session.
The latest low reached was around 2957.00 before the price slowly climbed back up in the Asian session this morning (Tuesday) to the 3000.00 level.
The price reaction in this important zone will signal the direction of further gold movement.
Being below the Moving Average 50 (MA50) resistance line on the 1-hour time frame on the XAU/USD chart, the gold price tends to continue its bearish movement.
If it fails to hold above the 3000.00 level, the price decline risks exceeding the level reached yesterday before the price target shifts to around 2900.00.
However, if the price still manages to continue its rise in the Asian session this morning, the level around 3055.00 will be returned to be tested like yesterday.
A higher increase with a signal of a bullish trend change will push the price expectation to reach up to 3100.00 or higher.
