The close of last week's trading for gold was a little gloomy as the surge exhibited earlier failed to continue.
After reaching a recent 1-year high, the price of gold has slipped back to around the $2,000 level last Friday.
The price drop in the last session last week was also influenced by the strengthening of the US dollar which gave a positive reaction when the United States (US) NFP employment data report was published.
Overall, the latest data readings are positive, and ease some of the pressure to keep pushing the Federal Reserve (Fed) to slow their monetary policy.
It can be observed on the XAU/USD price chart that measures the value of gold against the US dollar, the price has reached a height of around 2032.00 last week before hovering again in the 2000.00 zone.
Continuing the opening trade earlier this week, the price was slightly depressed below the 2000.00 level in the Asian session, but bounced back to that level in the European session.
Price movement is still slow, but is likely to be more vigorous in the next session.
If the US dollar continues to strengthen and the decline in gold prices continues, the price is targeted to reach the 1950.00 zone again.
Next, with price movement signals that remain bearish, the 1900.00 zone will be the focus for a lower decline.
But the situation can change if the price of gold starts to climb back above the 2000.00 level.
A change in the price trend will be expected after the Moving Average 50 (MA50) barrier on the 1-hour time frame on the chart is successfully breached.
A higher move will retest the levels reached last week and it is likely that new highs will be recorded again this week.
