Market analysts still see the change in price direction that occurred at the opening of trading early Monday yesterday as just a correction.
Add to that the market is now at the end of February, it is feared that there will be profit taking activities by the market players.
Therefore, the US dollar which was predicted to continue strengthening last week showed a decrease at the beginning of this week.
In addition to seeing most other major currencies rise again, this situation also gives room for gold to show a rise again.
However, the price increase that took place was not enough to convince investors and remain prepared for a worse situation this week.
On the XAU/USD chart which measures the value of gold against the US dollar has seen the pattern of price decline displayed throughout the past week stopped at the beginning of the week yesterday.
After briefly leveling off at a 9-week low of 1807.00, gains began to show in the New York session reaching the 1820.00 level.
On the movement in the 1-hour timeframe of the XAU/USD chart, the price is seen struggling to stay above the Moving Average 50 (MA50) level before returning to move below that level again today (Tuesday).
After failing to break above the 1820.00 level, the price which started to show a decline again is expected to record another recent low this week.
The target is for the price to move towards the main support zone at 1800.00. This zone may be breached if the US dollar continues to be strong, pushing the price to fall lower.
But if the opposite happens, the continued increase is seen to need to test the resistance at 1830.00 before giving an indication of a change in trend.
