The price of gold this week began to show a more gloomy movement pattern this week compared to the positive increase that occurred in the previous week.
The movement of the US dollar currency which affects the change in the current gold value in the market has seen the strengthening of the US dollar putting pressure on the yellow metal.
After the positive United States (US) NFP employment data report, the risky market sentiment following the re-emergence of the Russia-Ukraine war and the report of movement restrictions in China to curb the spread of Covid-19, have pushed the strengthening of the US dollar at the beginning of the week.
However, the safe-haven asset gold has failed to attract investors' attention for now and is experiencing a decline in the risky market environment.
It can be observed that the price movement on the XAU/USD chart which measures the value of gold against the US dollar with an initial decline pattern was exhibited at the end of last week when the reaction to the publication of the US NFP employment data report.
The price of gold on Friday was seen to have dropped to around 1690.00 in the New York session after the movement in the previous session saw the price fail to cross the Moving Average 50 (MA50) barrier in the 1-hour time frame for a bearish movement signal continuing to the beginning of this week.
A more obvious decline was witnessed by investors during early trading on Monday yesterday when the price of gold plunged to a level around 1666.00 continuing the bearish trend.
Slower and more flat price action was seen in continued trading on Tuesday, hovering above the 1660.00 focus zone.
It is likely that the price of gold will continue to drop lower in the next session past the 1660.00 zone before the next focus will be on the RBS (resistance become support) zone at 1640.00.
The continued decline will aim to return to the support zone at 1615.00 which was reached at the end of last September.
Meanwhile, if the price makes an increase again, the initial resistance at 1680.00 is seen to be tested before the price tests the MA50 barrier.
If successful, a bullish trend change signal for gold will push the price past the 1700.00 zone before heading to the resistance zone at 1720.00.
