Gold investors who were happy in previous weeks saw the yellow metal's price continue to rise, but began to be cautious again this week as prices began to move flat.
It can be observed that the price movement on the XAU/USD chart, which measures the value of gold against the US dollar, maintains a bullish trend throughout the month of October.
The price, which started rising at the beginning of the month when the Hamas-Israel war broke out, has finally seen the price reach the 2000.00 level at the close of trading last week.
However, at the opening of the week yesterday, the price moved horizontally below the 2000.00 level, making investors cautious.
In addition, the FOMC meeting and some important data including the United States (US) NFP employment report are expected to have a big impact on the US dollar this week and will also affect the movement of gold.
Being one of the supporting indicators for the price, the price movement remains above the Moving Average 50 (M50) line on the 1-hour time frame on the XAU/USD chart, which indicates a sustained bullish trend.
The price remains hovering slowly below the 2000.00 level until the European session this afternoon with the expectation that the level will be tested again.
Is the price able to overcome the 2000.00 level to continue recording the latest high level?
If the bullish trend continues, the price breaking through the 2000.00 level is expected to overcome last week's high level around 2009.00 which has been reached.
The target for the next high is at the 2050.00 level which was the focus of last May's trade.
However, if the price instead plunges after failing to overcome the 2000.00 level, the initial decline is seen to be around 1980.00 first before falling lower.
Next, the RBS (resistance become support) zone at 1950.00 will be tested like last week's trading.
