There was a slow increase in gold trading yesterday, but the price movement is seen to be still flat in a small range after last week's plunge.
The strengthening of the US dollar towards the end of last week's trade has pressured the price of gold to fall again after the all-time record (all-time high) was recorded at a height of $2,222.
However, the strengthening of the US dollar that stalled at the beginning of yesterday's week saw the decline in gold prices not continue, instead the price leveled off between the price range of $2,160 to $2,180.
Current price movements can be observed on the XAU/USD chart which measures the value of gold against the US dollar.
The price trying to move above the Moving Average 50 (MA50) line on the 1-hour time frame on the chart can signal for gold prices to rise again.
However, investors are still on alert for any possibility that may occur.
Focused economic data will be observed such as the economic growth data of the United States (US) and the PCE index, to get a clearer indication of the direction.
If the price of gold manages to recover and make an increase, the level of 2200.00 will be reached and it is expected that there will be an attractive reaction to the displayed price.
If there are strong factors to support gold's surge, there is still a chance for the recent record high to be broken again.
However, gold remains at risk of further decline if the strengthening of the US dollar again pressures prices to fall.
The next drop in price is seen to go to the price concentration zone at around 2145.00 to test it.
The bearish trend will be more clearly visible if the price continues to break lower past the following zone with the target moving to the 2100.00 level.
See the XAU/USD price chart image below for your technical analysis reference.
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