Still closely monitored, gold price movements are still hovering around the important $2,000 zone as investors continue to watch for the latest clues that could influence the trading of the yellow metal.
If observed on the XAU/USD chart which measures the value of gold against the US dollar, the price increase since last week has finally managed to reach the 2000.00 level again this week.
But the price is seen struggling to maintain the price position above that level after being tested on trading Tuesday and Wednesday yesterday.
In fact, the drop in price was shown in the New York session yesterday to the level of around 1987.00.
This follows the strengthening of the US dollar yesterday when the economic data of the United States (US) was published with a good reading.
However, investors are still wary of trading heading into the end of the week and assessing other additional factors that could move prices.
Continuing trading in the Asian session this morning, the price gradually rose again towards the 2000.00 level but still did not touch it when the price was flat in the European session.
The Moving Average 50 (MA50) line on the 1-hour 1-hour time frame on the XAU/USD chart is seen being retested after the price fell below it yesterday.
The price reaction at the 2000.00 zone will be an important signal that will prompt trading action by market players.
If the price manages to rise above the 2000.00 level, a higher increase will be expected for the price of gold to record a new record high.
The next target is to approach the zone around 2030.00 after the last time the price traded around that last May.
However, if the 2000.00 zone still fails to be penetrated, even if the price starts to show signs of plunging, investors will be ready for a change in the bearish trend for gold.
The price drop is seen to first test the 1980.00 level before continuing towards the 1950.00 concentration zone.
