Still moving in the horizontal zone, gold prices showed interesting movements at the close of trading at the end of last week.
The United States (US) employment data report that affects the US dollar currency also affects the value change for the yellow metal commodity.
It was a bit of a surprise to investors when the US dollar showed a significant strengthening until the end of the last session last week despite the published NFP data report for August being rather gloomy.
Job growth was higher than forecast, but average incomes fell and the unemployment rate in the US jumped to 3.8%.
Looking at the price on the XAU/USD chart which measures the value of gold against the US dollar, the price initially made an early rise and recorded a recent high at the 1950.00 level.
However, the 1950.00 level is seen as an obstacle for the price to rise higher which then sees the price of gold fall again.
The decline reached around 1935.00 before leveling off around that until the session ended.
Continuing the opening trade earlier this week, the price slightly rose above the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the XAU/USD chart but still hovers below the 1950.00 level as of today's European session.
If the rally continues, the price will test the 1950.00 resistance to try to break through it and record the latest high of the week.
If the previous bullish trend is still successfully maintained, the price can soar to reach the level of 1980.00 which was reached last July.
On the other hand, if the price of gold plunges more severely this week, the price will likely pass the 1930.00 level and head towards the RBS (resistance becomes support) zone at 1920.00.
Next, a lower drop will return to the previous concentration zone which is around 1900.00 and an attractive price reaction is expected to be shown.
