After showing a flat price movement in trading at the end of last week, gold slowly declined at the opening early this week.
The $3,400 level is a marker that prevents prices from advancing higher with the attraction for the yellow metal decreasing again.
Investors are still observing the current market sentiment which will be a clearer indicator of the direction of gold's movement.
If you look at the XAU/USD chart which measures the value of gold against the US dollar, the price showed a gradual increase pattern last week until at the end of the week approaching around 3400.00.
However, after reopening at that level in the Asian session this morning (Monday), the gold price began to show a decline and crossed the Moving Average 50 (MA50) support line on the 1-hour time frame on the chart, which triggered a bearish signal.
Until the opening of the European session, the price was at the level of 3360.00 with lower downside risk for gold trading.
If the decline continues, the gold price will approach around 3300.00 again and invite an interesting reaction to be observed as a sign of the next direction.
The 3270.00 level reached at the end of July will be the target for the continued decline.
However, if gold manages to recover, the price will attempt to surge through the 3400.00 level which remains a price resistance for now.
Breaking through that resistance will push the price back towards the previous record high of gold at 3500.00.
