Looking at the XAU/USD price chart which measures the value of gold against the US dollar, the price was seen to move flat on Thursday yesterday after the market saw a surge earlier in the week.
Investors are increasingly cautious as the United States (US) NFP jobs data report draws closer to publication.
The ADP jobs report that was published last Wednesday seemed to give a negative initial indication for NFP following the declining numbers.
The movement of gold prices will be determined by the strength of the US dollar currency with the reaction to the report published later in the New York session.
As of last Wednesday, the price of gold has managed to rise almost to the level of 1950.00 before leveling off throughout Thursday yesterday below that level.
Investors are wary of early signals for a bearish move as prices begin to hover below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the XAU/USD chart today.
If the US dollar strengthens after this, the price is expected to plunge below 1930.00 or retest 1920.00 which is in the RBS zone (resistance becomes support).
If it breaks through lower, the price drop target will move to the 1900.00 level, one of the important levels that was the focus before.
Meanwhile, if there is a surge, the closest resistance at 1950.00 will be broken for the price to record the latest high level.
More bullish, the price will continue the previous rising pattern and potentially reach up to the height of 1980.00.
It should be noted that price movements can reach a large range when the reaction to the NFP data is published because it is an important indicator for the Federal Reserve (Fed) to determine monetary policy.
