Why did the price of gold fall at the close of trading at the end of last week?
The market during the last session focused on the publication of the United States (US) NFP employment data report.
Although readings were somewhat mixed, the market appeared to be reacting to strong job growth in May that exceeded forecasts.
Thus, the strengthening of the US dollar has again put pressure on the price of gold which has declined again.
It can be seen on the XAU/USD chart that measures the value of gold against the US dollar, the price hovering slowly at the height of the 1980.00 zone has plunged to the previous concentration zone of 1950.00.
Continuing the opening of trading at the beginning of the week yesterday, the price that started in the 1950.00 zone continued to decline until around 1940.00.
The New York session saw a rebound in gold prices after the US dollar weakened following a slightly gloomy reading of the ISM survey data for the US service sector.
Continued trading today (Tuesday) featured slow movement of gold prices at the Moving Average 50 (MA50) support level on the 1-hour time frame on the XAU/USD chart as investors await further clues.
If yesterday's surge continues today, investors can expect a rally towards the 1980.00 resistance zone that was also tested last week.
Breaking that resistance will prompt further gains towards the important focus level of 2000.00.
However, if the price of gold plunges again, the lowest level reached yesterday is likely to return to the price.
If the penetration is lower, the target is directed to the previous concentration level which is at the support of 1900.00.
