The gold commodity ended last week's trading on a high note showing a continued increase in value following the significant depreciation of the US dollar.
The percentage of expectations for the Federal Reserve (Fed) to continue aggressive policy tightening began to decrease amid the previous week's gloomy data.
The United States (US) NFP employment data report for October presented a dismal reading while US inflation data showed a decline for the fourth month in a row.
Therefore, the market is increasingly expecting the Fed to slow down policy tightening based on these data, making the US dollar move lower in the market.
The XAU/USD price chart which measures the value of gold against the US dollar has seen a bullish pattern over the past week reaching a 12-week high.
After the gold price rally initially managed to break through the 1720.00 resistance, the 1760.00 height zone was successfully reached at the end of the week.
The price is still moving above the Moving Average 50 (MA50) support level on the 1-hour time frame on the XAU/USD chart to continue this week's bullish trend.
If the price increase continues this week, the latest target is for gold to reach the 1800.00 level.
The last time the level touched that level was last August 15 before the price fell below that level for this 3-month period.
However, if the price starts to show a decline below the 1760.00 zone and breaks through the MA50 support, investors should prepare for another fall in gold ending the previous uptrend.
The drop in price is seen to be heading towards the concentration level of 1720.00 before testing the 1700.00 zone which became one of the price support levels last week.
