The joy of gold investors in the past week was dampened when the opening trade of the early week yesterday saw a different price movement pattern displayed.
Last Friday, the price of gold managed to rise again following the depreciation of the US dollar which occurred when the strengthening momentum after the published consumer inflation data failed to continue.
Following the American market that was on holiday on Monday yesterday, the US dollar moved flat which also affected the movement of gold prices.
It can be observed on the XAU/USD chart that measures the value of gold against the US dollar, the price is flat above the 2050.00 zone yesterday.
Prior to that, investors had witnessed a strong surge in gold from the lowest level around 2013.00 last week to surpass the 2050.00 level at the end of the week.
However, the momentum of the price surge failed to continue yesterday and resumed trading today (Tuesday), the price of gold hovered in the 2050.00 zone in the Asian session continuing into the European session.
Investors also keep an eye on current gold movement signals that have the potential to strengthen following the current risky market environment.
The slow movement of the price is seen hovering testing the support line of the Moving Average 50 (MA50) on the 1-hour time frame on the XAU/USD chart around the 2050.00 zone.
If the price bounces back to make an increase, this will be an early indication of a bullish move for gold.
The zone around 2060.00 is seen as the closest obstacle to be overcome before the price rises further towards the 2070.00 zone.
On the other hand, if the price plunges below the 2050.00 zone, investors need to prepare for a severe fall in the price of gold that could reach the 2013.00 level reached last week.
A further decline could occur if the price continues to break through that zone and further towards the next concentration zone at 2000.00.
