Gold ended the Asian session trading today for the early opening of the week with a slightly disappointing performance as it failed to show any gains.
If you notice, towards the end of last week's trading, the price of gold managed to recover after the fall that occurred from the beginning of the week almost reaching the $2,000 level.
The situation of the movement of gold is affected by the change in the performance of the US dollar as the Federal Reserve's (Fed) monetary policy projections continue to be observed.
The strengthening of the US dollar at the beginning of last week pressured the price of gold to fall, but the momentum of the king of the currency, which was a little gloomy at the end of the week, gave room for the price of gold to rise again.
Examining the XAU/USD chart which measures the value of gold compared to the US dollar, the price that had dropped almost touching the 2000.00 level was seen to rise again until last Friday it reached a height of 2039.00.
However, at the end of the last session of the week, the price saw a slight retreat to around 2030.00, which is the zone that was the focus of the price before.
The price movement has signaled bullish after being above the Moving Average 50 (MA50) support on the 1-hour time frame on the chart, but today's decline is seen to test that line in the European session.
If the price manages to bounce back up, the high level reached last Friday is likely to be overcome by the price.
Next, the 2050.00 level will be the focus as an important resistance to be tested after the price started diving from that area last week.
Meanwhile, if the price drop in the Asian session this morning continues to the following sessions, the price could possibly reach the 2000.00 zone again.
And it is not impossible for prices to fall further below that level if pressure continues to be placed on gold trading.
