Gold trading continued further decline at the beginning of the week yesterday, seeing the price moving away from the $2,000 level that was reached last week.
Market sentiments that have eased slightly with the development of the global banking crisis are seen to reduce the appeal of the gold safe-haven asset.
Meanwhile, the US dollar again traded weakly at the beginning of the week, failing to continue the strengthening that was exhibited at the close of trading last week.
Looking at the XAU/USD price chart which measures the value of gold against the US dollar, the price started trading around 1975.00 and slowed down in the Asian session yesterday.
The decline was more evident in the European session until the bearish price tested the 1950.00 concentration zone before rebounding weakly in the New York session.
The horizontal price movement above the 1950.00 zone continued trading today (Tuesday).
A bearish signal on the XAU/USD chart where the price moves below the Moving Average 50 (MA50) barrier level on the 1-hour time frame remains anticipating further declines in gold trading.
If the decline continues below the 1950.00 zone, the price will decline to lower levels to the focus target at 1900.00.
This indicates a drop of up to another $50 for gold if the price reaches that level.
However, if the 1950.00 zone succeeds in becoming a support for the price surge to occur again, the resistance level at the height of 2000.00 will continue to be an important focus to be tested.
The price of gold will record its latest high since February 2022 if the zone is successfully penetrated.
