Investors saw gold move flat around the $3,300 price zone until the beginning of this week after the downward pattern that was displayed last week.
Gold reached an all-time high of $3,500 before starting to show a decline as market sentiment changed positively.
President Donald Trump last week stated that negotiations with China regarding tariffs were progressing, causing the attraction for gold to fade while the US dollar was traded higher.
However, momentum slowed towards the end of the week when Beijing denied negotiations with the United States and now investors remain cautiously awaiting the latest developments.
On the XAU/USD price chart which measures the value of gold against the US dollar, the price is seen to have declined from a peak of 3500.00 to around 3270.00 last week.
Continuing on Monday's trading, the price is still holding above 3270.00 which remains a support zone during the price creation.
The rise in the New York session yesterday to the 3350.00 level was not continued as the price decreased from the opening of the Asian session this morning (Tuesday) to around 3320.00 towards the opening of the European session.
The price is seen testing the Moving Average 50 (MA50) support line on the 1-hour time frame on the chart which investors are watching to assess the direction of further movement.
If the price increase is successful and exceeds the 3350.00 level, the gold price has the potential to climb higher before returning to its previous height.
The 3500.00 record is waiting to be challenged before the price records the latest historical record.
For the opposite situation, the price decline will test the support at 3270.00 and if it breaks below, the price risks falling lower.
Furthermore, the 3220.00 zone will be the focus for the price with the expectation of an attractive price reaction around that will give an important signal for gold trading.
