The joy was short-lived, as gold investors had to turn a blind eye as the yellow metal fell back below the $2,000 mark.
On Tuesday yesterday, the price of gold managed to show an increase again until it reached around $2,011 while the US dollar showed a decline in the market.
However, as analysts have warned, gold remains volatile with prices potentially plunging again towards the end of the week.
Examining the XAU/USD price chart which measures the value of gold against the US dollar, the price is seen to have failed to hold above the 2000.00 level before a significant decline occurred again in the European session this afternoon.
Initially, the price moved above the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the XAU/USD chart, which expects that the price will display a more bullish movement.
On the contrary, what happens when the price plunges below the MA50 level re-triggers the expectation of a bearish pattern towards lower levels.
The level reached on Monday around 1981.00 will be tested again and if the decline continues, the price is seen to head towards the concentration zone at 1950.00.
The bearish indicator will be clearer if the price breaks below 1950.00 with the next price target being 1900.00.
However, if the price of gold manages to bounce back above the 2000.00 level, a higher rise will be expected towards around 2030.00 before testing last week's high around 2048.00.
If the bullish trend movement is successfully displayed, investors still hope for the price of gold to reach again the important level at 2070.00, the level reached in March 2022.
