Investors satisfied with gold's performance at the opening of the week yesterday?
In the Asian session yesterday, Monday, the price of gold looked excellent showing an upward trend, but the positive momentum did not last long.
Overall, gold has been trading in a flat pattern since last week as investors are still examining the indicators that drive the commodity market.
If you look at the movement of the XAU/USD chart that measures the value of gold against the US dollar, the price started low at the opening of the first session yesterday around the 3324.00 level before showing an increase.
The price increase reached a height of 3358.00 and then retreated back down, failing to maintain the bullish pattern.
The price dropped below the Moving Average 50 (MA50) line on the 1-hour time frame on the XAU/USD chart, giving a bearish signal for gold's movement, seeing the price end flat in the New York session near 3330.00.
Prices are still hovering around that area continuing trading today (Tuesday) with movement in the Asian session limited to testing the MA50 resistance line in a slow range.
Struggling to break through the 3340.00 level has investors cautiously examining gold price movements while assessing any signs in the market that could influence the safe-haven asset.
For expectations if the price manages to rise above yesterday's trading level, the target is to reach the 3400.00 level again.
Breaking through that zone could support the potential for gold prices to challenge the all-time high of 3500.00 previously.
On the other hand, if the gold price drops below this, the 3300.00 level is the closest to be tested.
Continuing the decline will expect the support zone at around 3270.00 to be the next target for the price.
