The dismal performance of the gold commodity continued at the opening of trading earlier this week when it showed a decline in the Asian session and the European session yesterday.
The Federal Reserve (Fed) which remained hawkish in policy setting saw an increase of 75 basis points for the third time in a row at last week's meeting which has supported the strengthening of the US dollar.
The situation also added pressure to gold commodity trading by maintaining the pattern of price declines for the past few weeks.
Looking at the price movement on the XAU/USD chart which measures the value of gold against the US dollar, the price has shown an early decline in yesterday's Asian session breaking through last week's late support level at 1640.00.
However after the price reached around 1627.00, the price was seen rebounding to hover around the 1649.00 high in the European session.
Failing to extend the move higher, the price retreated again in yesterday's New York session to a recent low around 1622.00.
The movement of gold prices remains in a bearish trend when it is seen that it still fails to cross the barrier of the Moving Average 50 (MA50) level in the 1-hour time frame on the XAU/USD chart.
Continuing on today's trading (Tuesday), there is an increase in prices displayed from the Asian session up to the European session, but the price is seen struggling to break through the barrier of 1640.00.
If it manages to break through that level and also the MA50 barrier, it will be an early signal of a trend change for gold with the target to head back to the 1657.00 zone before returning to last week's resistance at 1680.00.
However, if the price continues the previous decline pattern, it is likely that the price will surpass the lowest level recorded at the end of the last New York session while hunting for the latest record again.
Gold's latest 2-year low is seen to target around 1600.00 or possibly even lower in this week's trade.
