Gold traded gloomy at the opening of the early week yesterday seeing prices slip lower from last week's levels.
The situation was also driven by the strengthening factor of the US dollar after the dismal performance of the king of currencies in the previous week.
With the strengthening of the US dollar yesterday, the price of gold also fell when it opened below the $2,030 level.
It can be observed that the pattern of price decline is starting to show on the XAU/USD chart which measures the value of gold against the US dollar.
Yesterday's daily lows saw prices reach around 2012.00 before closing the New York session near 2020.00.
The price movement was slow in the Asian session this morning (Tuesday) but started showing an increase in the European session.
The rise in price to around 2025.00 also tested the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the XAU/USD chart which could give an early signal for further trend changes.
If the price increase continues successfully, the 2030.00 zone will be breached to display a bullish movement for gold prices.
The continued rise is likely to overcome last week's levels to reach the target at the concentration level at 2050.00.
On the other hand, if the price pulls back down again, the level reached by the price yesterday can be exceeded for the previous downward pattern to continue again.
The closest target is for the price towards the important zone at 2000.00 which has not been touched since the last 9 weeks.
