Gold is increasingly showing a depreciation in value as there are new factors that are increasingly eroding the attraction of safe assets.
The market situation was restored with reports that a US court blocked the implementation of President Donald Trump’s aggressive tariffs.
This temporarily eased concerns about the uncertainty that hit the market due to the tariffs and also restored the US dollar.
Meanwhile, gold, which was the choice of investors in the previously risky market environment, has begun to show a decline again.
Looking at the XAU/USD price chart that measures the value of gold against the US dollar, the price showed hope of recovering higher last week.
However, the situation changed this week with the price declining again below the 3300.00 zone.
Slowly hovering around that zone on Wednesday, the price then plunged lower when it resumed trading at the beginning of the Asian session opening this morning (Thursday).
The latest decline has reached a level of around 3245.00 before slowly bouncing back up in the European session.
However, the price movement that remains below the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the chart still suggests a continued bearish pattern.
If the price continues to decline in the Asian session this morning, it is likely that the zone around 3200.00 will be broken again, which is one of the previous price focus areas.
If the decline continues, the lower target will shift to around the zone between 3150.00-3120.00.
However, if there is a surge that passes the MA50 barrier and penetrates the 3300.00 zone, the gold price has the potential to shine again.
Higher increases are expected to go up to around 3400.00, which is the zone tested in early May trading.
