Gold traded slightly positive at the early opening of the week with higher prices showing compared to the flat movement at the end of last week.
Gold traded between the $2,040 and $2,010 range last week with the decline seen on Wednesday seeing the price slip back below the $2,030 level.
Analysts are still waiting for a clearer direction of price movement for gold which is expected to be driven by the results of the FOMC meeting this week.
If the results of the meeting support the strengthening of the US dollar, the price of gold will be pushed down.
On the other hand, if the US dollar weakens, this will open the way for gold to reach higher levels again.
Looking at the XAU/USD price chart which measures the value of gold against the US dollar, the price which reached the level of 2010.00 last week has shown an increase again today.
The 2030.00 zone is seen to be tested by prices in the European session this evening with expectations of higher upside potential to continue.
This follows price movement above the Moving Average 50 (MA50) support line on the 1-hour time frame on the chart at the opening of the Asian session this morning.
If a move higher occurs and overcomes last week's high, the nearest target seen that will be a target to test is at 2050.00.
A higher increase in prices can be expected following the impact of the FOMC meeting and the NFP employment data which can trigger drastic price movements.
In fact, the price could also plunge downwards with investors watching gold record new lows.
The 2000.00 zone will be the most important zone to be tested and the reaction around it will give an indication of the further movement of gold.
If it breaks through, the price of gold is at risk of continuing to experience a more severe decline, continuing to trade for the next few weeks.
