The value of gold during last week's trading managed to reach the target zone of $1,950 taking advantage of the US dollar currency which is still 'wounded'.
With the FOMC meeting expected to raise interest rates by 25 basis points this week, it is becoming increasingly clear that the Federal Reserve (Fed) is slowing its previous policy tightening.
In addition, the United States (US) NFP employment data report that will be published at the end of the week is also predicted to be gloomy for January's reading.
A situation that will encourage further depreciation of the US dollar will give an advantage to yellow metal assets to continue to increase in value.
However, if you look at last week's closing trade, the price of gold failed to continue rising higher before settling slightly lower again.
If you look at the XAU/USD chart which measures the value of gold against the US dollar, it saw an increase in the New York session last Wednesday towards the level of 1950.00.
However, that level is seen as the latest resistance for the price when the price drops back to around 1920.00.
Continuing the trade earlier this week, the price opened around 1928.00 continuing the flat movement of the past week.
Investors assess a bearish signal for gold when the price starts to move below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the XAU/USD chart.
If the price rebound successfully continues this week, the 1950.00 resistance will continue to be tested to be broken.
Passing the obstacle will record the latest 9-month high towards the target of 2000.00.
However, if the atmosphere is more gloomy for gold this week, the pattern of falling prices is likely to be exhibited.
The price will decrease to the RBS (resistance become support) zone of 1900.00 before continuing further decline to the previous concentration zone at 1870.00.
