Gold trading last week reached the target level of $3,400 but fell back again at the close of the last session.
The appeal of gold as a safe-haven asset faded again after the trade war tension between the United States (US) and China began to ease at the end of the week.
The conversation between Donald Trump and Xi Jinping in a phone conversation last week yielded positive results and China reopened rare earth exports, which are important imports for American industry.
Both countries sent representatives for trade talks in London on Monday hoping for a good result.
Examining the XAU/USD price chart, which measures the value of gold against the US dollar, the 3400.00 level was successfully reached during the rise last Thursday.
However, as soon as it touched that important level, the price continued to react by pulling back and then continued the next day.
The decline continued until the New York session last Friday and finally closed the week's trading at around 3310.00.
The opening of the week saw prices decline and reach the 3300.00 level in the Asian session this morning before bouncing back to show a slow increase until the European session.
The price movement, which is still below the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the XAU/USD chart, maintains the current bearish trend expectation for gold.
The expectation for further price declines is likely to surpass the 3300.00 level before continuing the pattern of last week.
The target for the next decline is towards 3320.00 and then at 3150.00.
However, if the price manages to climb higher past the MA50 barrier, the price has the potential to reach the 3400.00 level again like last week.
A surge beyond that level will target the record high of gold that was previously reached at 3500.00.
