The recovery in gold prices is showing again since Thursday's trading yesterday after investors have seen the price fall from the beginning of the week almost reaching the $2,000 level.
Prices rose slowly and continued into the European session this afternoon (Friday). Investors are alert for the risk of price movement in the last session for this week.
The strengthening momentum of the US dollar that has subsided a bit gives room for gold to rise at the end of the week.
Even so, the US dollar is still trading well at the highest level in 1 month when the economic data of the United States (US) is published with a positive reading.
Examining the XAU/USD price chart which measures the value of gold against the US dollar, the decline in prices that continued last Wednesday almost touched the 2000.00 level before a rebound was displayed.
Slow price movement in the Asian session today (Friday) with the increase continuing into the next session to around the 2030.00 level.
The price that has started to move above the Moving Average 50 (MA50) support level on the 1-hour time frame on the chart gives an early signal for a change to a bullish trend.
The upside can be expected to continue higher if the price breaks through the 2030.00 zone with a target to reach around 2050.00 or 2060.00.
However, if the decline occurs again below the MA50 support, the 2000.00 level will be the target again to be tested.
A drop lower will display a bearish movement of the gold price towards the next concentration zone at 1970.00 in addition to recording a recent low.
