Gold commodity trading was driven by the movement of the US dollar last week as investors reacted to the final FOMC meeting of 2022.
On Thursday, gold prices fell under pressure from a strengthening US dollar driven by Federal Reserve (Fed) Chairman Jerome Powell's hawkish comments on monetary policy hereafter.
However, there was a rebound on display on Friday when the US dollar was seen not to continue its strengthening at the end of the week.
Price movements can be examined on the XAU/USD price chart which measures the value of gold against the US dollar with early signals for prices to make gains at the beginning of this week.
This is due to the price starting to move above the Moving Average 50 (MA50) support level on the 1-hour time frame on the XAU/USD chart.
However, analysts warn the US dollar has the potential to continue strengthening this week and could put pressure on gold again.
Looking at the past week, the price has made a jump to a high of 1824.00 and a drop to around 1775.00.
The price started the week trading slowly above the 1790.00 level from the beginning of the Asian session continuing into the European session.
The upside is seen to test the key zone at 1800.00 if the US dollar is still trading weak earlier in the week.
The continued rise will recapture last week's highs before the next target for price testing is seen at the 1830.00 zone.
Meanwhile, for the expectation of a drop in gold prices again, passing the support level at 1775.00 is then expected to go to the RBS (resistance become support) zone of 1760.00 for the price to test the zone.
The further decline that continued after giving a clearer indication of a change in the bearish trend for gold will lead to the support zone of 1740.00.
