Gold prices plunged lower continuing today (Tuesday) after the decline exhibited at the market opening earlier in the week.
What has happened to gold’s brilliant performance on trading a few weeks before?
On the XAU/USD price chart which measures the value of gold against the US dollar saw the price have continued to decline lower this week after reaching a high of 2070.00 at the beginning of last week.
The attraction of gold as a safe-haven asset is beginning to gloom even as the war crisis between Russia and Ukraine is still lingering.
Negotiations between the two countries will resume today.
While the US dollar is now dominating ahead of the FOMC meeting which will expect an interest rate hike by the Federal Reserve (Fed) for this meeting.
The strengthening US dollar also added pressure on gold which is expected to depreciate lower until the end of the week.
After the decline in the price in the New York session yesterday hovered around the level around 1950.00, the decline continued again since the Asian session this morning began until continuing to the European session.
As of 4.30pm local time, the price has slipped to the level around 1925.00 with the expectation for the decline to continue towards the 1900.00 focus level.
If the level is also successfully passed, the price will test the level of 1870.00 in the RBS zone (resistance become support).
If the price of gold increases, the 1970.00 zone, which was the focus of the price before, will be tested again.
The continued rise will re -target the 2070.00 high reached last week.
And if the price manages to jump just a little further past the 2074.00 level, the latest all -time high for gold will be created again.
