Gold trading slowed at the beginning of the week, staying above the $3,400 level after a decline in value at the end of last week.
The movement of gold in the market as a safe-haven asset is now seen to be influenced by the development of negotiations between representatives of the United States (US) and China in London.
Gold has been moving horizontally since Monday and continues to this day as negotiations in London are still ongoing in search of a consensus in trade.
If we examine the price movement on the XAU/USD chart, which measures the value of gold against the US dollar, the price reached the 3400.00 level in the Asian session yesterday before rebounding to show a moderate increase.
The increase in the New York session yesterday reached 3337.00 in addition to testing the Moving Average 50 (MA50) resistance line on the 1-hour time frame on the chart.
Failing to continue the rise, the price fell again when trading resumed in the Asian session this morning, approaching the 3300.00 level.
There was a price rebound towards the opening of the European session and the price once again tested the MA50 barrier which gave an important signal for the direction of further movement.
If it fails to pass the MA50 barrier, the price will give a signal to move down again with the 3300.00 level being an important support to be tested.
Breaking through this level will pressure the price to fall more easily with the target towards around the 3220.00-3200.00 zone.
However, if the price manages to jump higher, the price increase will return to target the 3400.00 level to be achieved like last week.
Passing the following resistance zone will expect the price to approach the record high of 3500.00 again.
