The completion of the US Non-farm Payroll report last week showed a drop in the value of the gold market to its lowest level since the end of November.
The economic calendar this week is quite dense and is expected to have an impact on the current gold price fluctuations.
Despite various situations that also have side effects, the main focus of traders is now focused on the US consumer price index data today (Tuesday) and the results of the FOMC meeting early Thursday morning.
Headline CPI data in November is expected to be flat and bring the annual rate to 3.1% compared to 3.2% in October. The core is expected to rise by 0.3% and the reading for the 12 months remains unchanged at 4.0%.
Going back to the December FOMC meeting, the market expected no rate change. However, the central bank may give a 'hawkish' statement to avoid prolonged monetary easing.
If the CPI report is not as predicted, the US dollar currency may continue to strengthen and will give a fall to the gold price market.
The movement of XAU/USD is now seen to be stable at the upper level of $1,980 after plunging from the value of $2,040 last week. If it shows an upward movement, the market may consider its movement to hover around $1,990 and $2,010.
Many traders are still reinforcing the speculation that the price of gold will experience a difficult road to rise at the level of $2,050 and will continue to lead to the upper target of $2,070 as predicted.
