Gold showed gloomy trading at the start of the week with investors remaining cautious while still expecting the US dollar to continue to move bleakly.
At the beginning of yesterday's Asian session, the price of gold showed an initial surge, but it shrank again in the European session and was flat throughout the New York session.
Even so, investors are still optimistic for gold to continue the pattern of price increases like the previous weeks.
Examining the XAU/USD price chart which measures the value of gold against the US dollar has seen the price reach a high of 1928.00 in the Asian session yesterday.
But the rising pattern failed to be maintained when the price fell again and finally closed the New York trading session around 1914.00.
The price tempo is slow but seen to continue its decline today (Tuesday) and started to drop below the Moving Average 50 (MA50) on the 1-hour movement on the XAU/USD chart giving an early signal to start a bearish trend.
The bearish pattern will be more clearly displayed if the price starts to move down below the important level of 1900.00 which is expected to be a support for the price.
If the price falls below that level, a further drop in the price of gold is seen to return to the previous concentration zone at 1870.00.
However, if the price remains above the 1900.00 level, the probability of the price will continue the bullish pattern like the previous week.
The continued increase will overcome the height reached yesterday before heading to the target of 1950.00.
Reaching that level will record the highest level of gold prices for the trading period since April 2022.
