The movement of the US dollar at the beginning of this week remains watched by gold investors as the king of currencies drives the direction of the yellow metal's price movement after interesting trades were presented last week.
However, the flat US dollar throughout Monday yesterday failed to give a clear direction for gold which was just hovering in the $1,950 price zone.
Observing the movement on the XAU/USD chart which measures the value of gold against the US dollar, the price has been moving in a horizontal zone since last Thursday with the high level of 1963.00 reached being seen as resistance during the price.
In the New York session yesterday, there was a momentary plunge in the price as if it wanted to break through the 1950.00 zone, but the price bounced back before slowing down and ending the trade at the end of the session around 1955.00.
After failing to break below 1950.00, the price that resumed trading in the Asian session this morning (Tuesday) is seen to have moved past the Moving Average 50 (MA50) level on the 1-hour time frame on the XAU/USD chart signaling that last week's bullish pattern will continue again.
However, price movements slowed into the European session, slightly rising to last week's highs.
If there is a clear jump in the price that passes the height of last week, investors will be more optimistic about the expected movement of gold to higher levels.
The price increase may continue towards the 1980.00 zone first before extending the increase to the target height at 2000.00.
On the other hand, if the price of gold dips below 1950.00 again, it will be a bearish signal for investors to prepare for a lower fall.
The price will decrease towards the RBS (resistance become support) zone of 1940.00 before the decrease reaches around 1920.00 which was the price concentration zone before.
