The gold commodity traded flat at the market opening earlier this week after showing a more positive move at the close of trade last week.
On Friday, gold prices managed to climb back above $1,700 per ounce after the previous Thursday's trade had hit a 6-week low of around $1,689.
The change in the value of gold in the market was also influenced by the movement of the US dollar which weakened slightly ahead of the United States (US) NFP employment data report last Friday.
However, for longer-term trading, the US dollar is likely to remain strong and put pressure on gold following hawkish indications by the Federal Reserve (Fed) for its policy meeting in September.
Investors are also monitoring the dollar index which has now surged to a 20-year high of 110.00.
If investors examine the price movement on the XAU/USD chart which measures the value of gold against the US dollar last Friday, the price is seen to have managed to display an upward pattern after showing a continuous bearish trend since the beginning of the week.
The price increase has crossed the 1700.00 level and also the Moving Average 50 (MA50) barrier on the 1-hour time frame on the XAU/USD chart which gives an early signal for a change in price direction.
The upside was seen reaching the 1718.00 level before closing the week trading around 1710.00.
Horizontal price movements throughout the Asian session on Monday morning hovered above the MA50 support level and could potentially display a different movement pattern this week.
If the increase continues past the 1720.00 resistance in the SBR (support become resistance) zone, investors are more optimistic about the change in the bullish trend and will expect a higher increase for gold.
The next increase will lead to the zone around 1740.00 which became a resistance in the early trading last week before the higher price increase is seen to reach the concentration zone again at 1760.00.
However, if the price fails to continue the increase past the 1720.00 zone instead shrinking lower below the MA50 support level, the bearish trend signal is seen to expect the lowest level of last week to be tested this week.
The latest target for the continued decline is to reach around 1680.00 for the price of gold to record a recent 7-week low.
