Uncertain market movements failed to give a clear direction to gold trading at the opening of the week yesterday.
Thus, the price of gold is seen to be moving horizontally around the $2,020 zone, not continuing last week's decline and not jumping to higher levels.
But the situation changed today (Tuesday), where gold prices began to show a fall at the beginning of the European session after slowing down in the previous session.
The price movement situation can be observed on the XAU/USD chart which measures the value of gold against the US dollar with a decline towards the 2000.00 concentration zone.
The price that started to move below the Moving Average 50 (MA50) level in the 1-hour time frame on the chart indicates a bearish movement for gold.
It is believed that the 2000.00 zone will be tested and the price reaction will be observed for investors to assess further movement signals.
If the strong US dollar pushes the value of gold lower, the price will plunge below the 2000.00 zone, showing a more clear bearish movement.
Next, investors can expect the price drop to continue towards the next concentration level which is at the 1950.00 zone.
However, if the price of gold remains above the 2000.00 level, investors are optimistic about the potential surge in gold prices that can occur.
A rebound above the MA50 barrier will push initial expectations towards around 2030.00 first before extending the next climb to reach 2050.00.
If the momentum is successfully maintained, the price could reach back to the previous peak height zone at 2070.00 to 2080.00.
