Although the US dollar showed a dismal performance in Tuesday's trading, gold failed to capitalize on the opportunity to rise in the market as market sentiment recovered from its previous risks.
The appeal of safe-haven assets is fading as gold prices decline again after displaying gains earlier in the week.
The XAU/USD price chart, which measures the value of gold against the US dollar, saw an initial surge above the 1800.00 level on Monday but the price failed to maintain momentum in Tuesday's trading.
Testing the SBR (support become resistance) zone at 1830.00, the price made a decline again yesterday until the end of the New York session to around 1815.00.
Continuing into today’s trading (Wednesday), gold price has signaled a bearish movement after moving below the Moving Average 50 (MA50) barrier level again and is likely to resume last week’s bearish pattern.
If a decline occurs, the price will retest the focus zone at 1800.00 before a continued lower decline will lead to the 1760.00 expectation zone.
The decline to the zone will also mark the latest low of gold for the 5 -month trading period, or the lowest for 2022.
On the other hand if the price surge successfully continues beyond the 1830.00 zone, investors are more optimistic for gold to move back in a bullish trend.
The price increase will test some of the higher focus zones such as at the 1850.00 zone and further at the 1870.00 resistance.
