The recovery in gold prices at the close of trading at the end of last week again healed the wounds in the hearts of investors after the price plunged initially below the $2,000 level.
When the strengthening of the US dollar on Tuesday last week followed the reaction to consumer inflation data in the United States (US) published, the price of gold was hit to fall.
However, the situation changed again at the end of the week which saw the price rise again to reduce the losses faced.
Looking at the XAU/USD chart which measures the value of gold against the US dollar, last week's price drop has reached around 1984.00.
But towards the end of the week it can be seen that the price made an increase again past the level of 2000.00.
On Friday, the price dipped slightly to test the 2000.00 level before bouncing back up to close at around 2013.00 in the last session of the week.
Price movements above the Moving Average 50 (MA50) support line on the 1-hour time frame on the XAU/USD chart indicate a bullish trend for gold.
The slow rise in price continued at the opening of the beginning of the week with prices flat around the 2020.00 level.
The 2030.00 zone is seen to be the focus to be tested for price increases if it continues after this.
And for a move higher beyond that zone, the 2050.00 level will be the next target.
However, if there is a decline again, it will be a concern for investors when the price of gold returns to the 2000.00 level.
It is worse if the price falls below that level which will be a warning signal for the further fall of gold.
