Investors' anxiety eased a little when gold prices rose again in the European session yesterday after in the previous session starting the opening trade at the beginning of the week with a fall in value.
The US dollar, which initially continued to strengthen in the Asian session after the hawkish indication by Federal Reserve (Fed) Chairman Jerome Powell in Jackson Hole last week, returned to show further decline in the European and New York sessions.
Thus, this situation has given room again for gold to record an increase again.
Although the US dollar is likely to be expected to shrink temporarily due to the factor of profit-taking activity and investor caution ahead of the US NFP report at the end of the week, but analysts warned that the US dollar could return to strength again at any time.
The price movement on the XAU/USD chart which measures the value of gold against the US dollar, the price is seen to have decreased to the level of 1720.00 passing the lowest level of last week around 1728.00.
There was a resurgence in the price of gold in the European session connected to the New York session with the daily high level reached around 1745.00.
If observed, the increase failed to cross the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the XAU/USD chart indicating that the price trend has not yet changed. Therefore, the increase that occurs is likely to be just a pattern of price correction.
The continued price movement in the Asian and European sessions today (Tuesday) is also seen to be still hindered by the MA50 barrier by exhibiting a slow decline pattern.
If the price makes a decline, the price support level in the 1720.00 zone will be in focus again and the price reaction in that area will be scrutinized by investors.
If the lower prices break through the zone, the price of gold will fall more severely with the expectation that it can go to around 1700.00 or reach up to the 1680.00 zone.
On the other hand, if the price increase starts to cross the MA50 barrier, the initial signal for a bullish trend movement will push the price towards the 1760.00 zone again, which is the price resistance zone of last week.
If it crosses it, investors will retarget the price of gold to reach the 1800.00 level.
