Gold trading turned gloomy this week as the price began to show a fairly significant falling price pattern.
Current factors in the market are not in favor of gold assets as the risk market sentiment of the past week started to subside, making the attraction of gold fade.
However, the war in the Middle East has not yet ended and at any time could trigger a re-warming.
Looking at the XAU/USD chart which measures the value of gold against the US dollar, prices have started to decline earlier this week as soon as the Asian session opened on Monday.
After reaching around 2335.00 at the end of the New York session, prices continued to move lower in the Asian session this morning (Tuesday).
As expected by analysts, the decline that occurred has reached the 2300.00 level which is the RBS (resistance becomes support) zone.
Prices began to flatten above that level until trading continued into the European session.
With the momentum of the displayed price plunge, the price of gold is seen as tending to continue its decline to a lower level.
The next target is at the previous concentration zone around 2770.00 before an extended decline is expected to reach around 2222.00.
However, if the RBS 2300.00 zone succeeds in preventing the price from falling down, the resulting price rebound will try to overcome the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the chart.
A move higher after a clear bullish trend reversal signal will see price attempt to challenge the previous record high at 2430.00.
