Gold trading has recorded a decrease in value to the lowest level last Friday, but in the last session of the week the price was seen to show a surge again before closing the curtain.
Investors will examine the movement of the US dollar this week which will continue to influence the current gold price volatility.
The US dollar is still expected to continue to strengthen following the Federal Reserve (Fed) seen as still needing to maintain their monetary policy tightening based on the economic data published.
Examining the XAU/USD price chart which measures the value of gold against the US dollar, the price is seen to have reached the 1820.00 level on the decline at the end of last week.
However, the bullish price was shown again past the 1830.00 level and then the price closed trading around 1842.00 in the last session of the week.
The price movement has been above the Moving Average 50 (MA50) support level on the 1-hour time frame on the XAU/USD chart giving an early signal to start a bullish trend.
The increase is shown at a slow tempo with the expectation of gloomy movement at the beginning of the week following the public holiday in the United States (US) in conjunction with President's Day.
The rising pattern if successfully continued is seen to lead to the 1870.00 zone which became a resistance during last week's trading.
Passing the zone will further drive a higher rise for gold towards the 1900.00 level.
But if the price of gold plunges back below the 1830.00 zone, investors should prepare for a more severe fall in the yellow metal asset.
A drop to recent lows is likely to reach around 1800.00 which is one of the price focus zones.
