After the energetic surge displayed by gold prices at the close of trade last week, it was a different story earlier this week as prices began to move grimly again.
Uncertainty in gold trading will continue to be influenced by the movement of the US dollar with mixed performance continuing into this week.
Therefore, investors will continue to monitor the reading of the economic data of the United States (US) that will be published this week, especially the reading of economic growth for the fourth quarter of 2023 and the data of the consumer personal expenditure index (PCE).
Examining the XAU/USD price chart which measures the value of gold against the US dollar, investors see that the surge pattern displayed last Friday did not continue yesterday.
The price increase has reached the level of 2040.00, but the price failed to continue the increase towards the target at 2050.00.
On the other hand, the price movement decreased again and leveled off around the 2030.00 zone again.
Despite the decline, the price is still moving above the Moving Average 50 (MA50) support line on the 1-hour time frame on the XAU/USD chart which suggests the move remains bullish.
The price rose slowly from the 2030.00 zone in the Asian session this morning, connecting to the European session, but still showing a clear direction.
If the rise in gold prices continues in the next session, the 2040.00 level will likely try to be reached again.
After exhibiting a more clear bullish movement or there are factors that support gold to strengthen, the price can reach up to the level of 2050.00
If the opposite situation happens, investors need to be prepared to see the gold price fall again after this.
A drop below the 2030.00 zone will again be a warning for the price to make a decline until reaching the target at the 2000.00 level.
