Gold trading was mixed earlier in the week as investors continued to assess the factors currently influencing the commodity market in the early August opening.
At the end of last week, the market focused on the United States (US) employment report with a reading that declined in July, triggering a decline in the US dollar currency.
However, the situation failed to support gold trading as investors saw the price of the yellow metal plummet in the last session of the week.
Examining the price movement on the XAU/USD chart which measures the value of gold against the US dollar, the price that previously climbed to around 2477.00 has then plunged to 2411.00.
However, the price managed to stay above the 2430.00 zone again towards the end of the New York session, however it is seen to remain below the Moving Average 50 (MA50) line on the 1-hour time frame on the XAU/USD chart.
Risky market sentiment with concerns about the risk of a US economic recession supported the initial rise in gold prices in the Asian session just now, but the price only reached 2458.00 before declining again.
The price is back below the MA50 barrier line and is hovering around the 2430.00 zone continuing European session trading.
If the price drop occurs, the price of gold is seen to pass through several concentration zones such as 2400.00 and 2354.00 for investors to assess the price reaction around that area.
As for expectations for price increases, the successful jump from the 2430.00 zone has the potential to overcome the level reached last week.
Next, the price will challenge the highest record in history that was recorded in mid-July last with a target of 2500.00.
See the XAU/USD price chart image below for your technical analysis reference.
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