The movement of the gold price is seen to decline in trading today giving an early signal for the downward trend of the precious yellow metal.
On the XAU / USD price chart which measures the value of gold against the US dollar, the price is seen to have fallen below the level of 1850.00 at the beginning of today's European market session (Tuesday).
The situation is also seen to accompany the decline in the value of silver in the market after the metal reached an 8-year high above the $ 30 level following the Gamestop issue which saw a battle in the market between retail investors and investment companies.
The price of gold was seen to soar in early trading this week reaching a high of around 1870.00 but the price failed to remain at a high level before seeing a decline again.
Technically, after the price moves below the Moving Average 50 (MA50) barrier level within the 1 hour time frame of the price movement, investors are likely to see earlier signals for a bearish trend.
The European session saw prices plummet to around 1845.00 before slowing back to the 1850.00 resistance.
The price decline is likely to continue in the New York session with the support zone last week around 1835.00 which will support the price from falling lower.
However, if the decline continues, the price can reach up to the support zone of 1820.00 or the previous support level of 1800.00.
On the other hand if the price soars again, the high level of 1875.00 will be the focal point for the price to test the resistance.
The level was also reached at the end of January but the price still failed to break through and so did last week's trade.
