Gold trading looks bleak with the upward price pattern displayed at the close of last week failing to continue this week.
The surge in gold prices was driven by the war conflict between Iran and Israel after the attack launched by Israel on Friday.
However, expectations for gold to surge higher this week were misplaced when the safe-haven asset failed to attract investor interest.
Price movements were observed on the XAU/USD chart which measures the value of gold against the US dollar in a market environment that remains risky.
At the opening of the week, gold prices had declined from a peak of 3450.00 before leveling off below the 3400.00 zone until yesterday.
However, investors began to be wary of a bearish signal for gold with movements hovering below the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the chart.
In the European session today (Thursday), prices fell to 3350.00 and further declines are expected to continue in the following sessions.
The closest target is for gold prices to reach the 3300.00 zone which has been the focus of trading for the past few weeks.
If the decline continues lower, gold prices are expected to approach the 3220.00 level and then 3150.00.
However, if the opposite situation occurs, a rebound in gold prices that re-penetrates the 3400.00 level will restore the potential of the yellow metal.
The highs of the beginning of the week will be challenged before the price heads back to its record high of 3500.00.
