Gold trading at the beginning of the week was seen to be slower than last week’s aggressive movement after prices plummeted again erasing previously achieved gains.
On the XAU/USD price chart which measures the value of gold against the US dollar has seen the price reach the level of 1739.00 last Thursday before the price plunged back to the level of 1700.00.
However, the price managed to close last week's trade higher again above the 1720.00 level.
Analysts expect gold prices to resume rising again this week, but price movements remained slow on Monday despite showing a bullish pattern.
Continuing on Tuesday's trading, the price showed a rise in the Asian session to the level of 1737.00 slightly above the highs reached yesterday.
However, in the European session, the market saw the price of gold decline again to the level of around 1726.00.
The situation was driven by the increase in US bond yields which had declined earlier and supported the strengthening of the US dollar in the market while putting pressure on current gold trading.
But if US bond yields again show a decline, gold prices could rise again to continue rising.
If the price continues to make a decline below the support level of Moving Average 50 (MA50) in the 1 hour time frame of price movement for the initial signal of bearish trend, the next level of 1720.00 will be tested.
A lower decline will push the price to fall lower to the 1700.00 level again.
For US dollar trading, investors will be monitoring US retail sales data to be published in the New York session shortly. Investors also remained vigilant ahead of the FOMC meeting early Thursday morning.
