Gold traded bleakly until the close of last week with the turbulent movement still being displayed at the opening early this week.
The decline in gold value until the last session of last week completes a two-week downtrend after a decline below the $3,400 level.
Current market sentiment is still being monitored carefully as President Donald Trump is now threatening to bomb Iran.
There is an increase in price displayed on the XAU/USD chart which measures the value of gold against the US dollar in the Asian session this morning.
From a low of around 3245.00 at the start of the Asian session, the price of gold displayed an increase towards the 3300.00 level with the movement slowing down at the opening of the European session.
The Moving Average 50 (MA50) resistance line on the 1-hour time frame on the chart will be tested which could signal if a trend change occurs.
Failure to cross the indicator line will expect further price movement downwards and continue the bearish trend.
The expectation for the nearest target for the price decline is at 3220.00 to record a new low for the 6-week trading period.
The continuation of the decline is seen at around 3150.00 with the bearish trend continuing.
On the other hand, if the price bounces back to make a new increase above the 3300.00 zone, it will give an early signal for a change in the gold price trend.
The price increase will return to target the previous high at 3400.00.
