Gold trading began to show a decline in value as the market gradually opened the European session today (Thursday) after failing to continue its upward trend.
On Wednesday, the gold price seemed to signal a recovery following the limited movement reaction displayed when the United States (US) consumer inflation data was published on Tuesday.
Investors are still stuck in assessing a clear direction for the safe-haven asset while observing the issues that are the focus of the market in influencing changes in current sentiment.
If we examine the XAU/USD chart that measures the value of gold against the US dollar, the price has shown a moderate recovery from the decline that approached the 3330.00 level last Tuesday.
The price increase continued until the Asian session this morning to around 3374.00 before the gold price began to reverse direction to show a decline.
The signal is less than pleasant for investors when the price drops below the Moving Average 50 (MA50) support line on the 1-hour time frame on the XAU/USD chart, which could be the beginning of a bearish price movement.
If it falls below the level reached on Tuesday, gold prices risk falling lower with a target to reach 3300.00.
Continuing the decline lower, the price support zone at 3200.00 awaits testing.
On the other hand, if the gold price shows a rebound, the target is still at 3400.00 which is a resistance for the price at the moment.
Breaking through this resistance would expect the potential for gold to return to an all-time high at 3500.00.
