In line with the optimistic predictions of investors, gold managed to end the trade at the end of the week to a higher level.
This follows the dismal movement of the US dollar at the close of trading in the last session last week.
Set to drive US dollar trading this week, the US NFP employment data report will be in focus on Friday for investors to get a picture of the Federal Reserve's (Fed) monetary policy setting.
On the XAU/USD price chart which measures the value of gold against the US dollar, investors have seen the price that reached around 1805.00 make a comeback to the high level of 1856.00 at the end of the last session last week.
The trend remains bullish with price movements above the Moving Average 50 (MA50) support level on the 1-hour time frame on the XAU/USD chart likely to continue rising again this week.
Resuming trading at the opening earlier this week, prices hovered slowly at last week's closing highs.
If the increase continues, the target is the 1870.00 zone that will be tested by the price after failing to break through in the past 3 weeks of trading.
After the resistance is successfully passed, then the target will move to the previous high of 1900.00.
However, investors still need to be alert for the possibility of a situation where gold prices may fall again.
If the price drops below the MA50 support level, it will be an early indication for a change in gold price direction.
The price will drop to test the 1830.00 level before heading towards around 1820.00.
A continued decline after a more clear bearish trend signal could push the price of gold up to the 1800.00 concentration zone.
