After falling to fresh 2-year lows at the end of last week's trade, the gold commodity started the week on a slower note.
Investors are also seen taking cautious measures while waiting for an answer to the results of the FOMC meeting early Thursday morning.
This is due to the effect of the meeting's decision that has an impact on the US dollar, which will affect the current movement of gold.
The XAU/USD price chart which measures the value of gold against the US dollar saw gold's movement blocked at the 1680.00 resistance level in early trading this week.
In yesterday's Asian session, the price was initially seen to make a decline, but only to the level of 1660.00 did not succeed in reaching the latest lowest level recorded last Friday around 1654.00.
The increase in the price of gold in the New York session yesterday was seen to begin to pass the Moving Average 50 (MA50) level in the 1-hour time frame and gave positive indications for investors for bullish price movements.
However, the price increase still failed to pass the resistance of 1680.00 in the trading continued in the Asian session this Tuesday morning with a slow decline exhibited in the European session.
The MA50 support level is tested for further gold price movement signals.
If the price of gold manages to make a surge and break through the resistance at 1680.00 there is a brighter potential to spread its wings to fly higher towards the next resistance zone at 1700.00.
With the successful continuation of the bullish trend, the price will return to the previous concentration level at 1720.00.
However, if the price of gold shows a downward movement, it is likely that the level reached last week will be successfully overcome.
A further drop in price is seen to lead to a lower support level around 1640.00 to record the latest 2-year low.
