Last week's trading close pleased the hearts of gold investors when there was a significant price jump for the precious metal.
During the dismal performance of the US dollar last week, gold took advantage of the space to find the best price level, however, investors should remain vigilant.
Although the US dollar suffered its first weekly loss for the year, the factor of delaying interest rate cuts by the Federal Reserve (Fed) can support the US dollar to continue to move strongly.
Thus, even though gold managed to show a surge, the price is at risk of falling at any time.
Looking at the price movement on the XAU/USD chart last Friday, the price initially showed a decline reaching around 2016.00, but a significant jump was shown in the New York session.
The price made a rally past the important zone at 2030.00 until reaching a high around 2041.00 at the end of the session.
The price opened slightly lower at the opening earlier this week saw a slow movement hovering above the 2030.00 zone still signaling for a bullish move following the price above the Moving Average 50 (MA50) support line on the 1-hour time frame of the chart.
If the rally is able to continue above last week's levels, the target is to reach 2050.00 and test that concentration level.
Meanwhile, if the price moves back below the 2030.00 zone, the price drop will be expected to happen again.
Passing the level reached last Friday, the price will be pushed towards the important zone at 2000.00.
