Gold surprised investors at the end of last week when it managed to shine brightly after going through gloomy trading since the previous week.
If previously the gold price was only flat in the $2,030 zone, at the end of last week the gold price soared until it broke through the $2,050 level.
In addition to the uncertainty of the week-end trading pattern, gold prices were affected by a significant weakening of the US dollar after the reaction to the published data.
A reading of survey data for the United States (US) manufacturing sector in February showed a contraction, missing forecasts.
This has prompted a surge in gold prices which initially struggled to break above the 2050.00 level.
Surprised investors when the surge in the last session easily crossed the 2070.00 focus level.
After briefly breaking through the 2080.00 level, the price movement started to slow down before the weekly trading curtain was anchored.
The early opening of the week saw prices flatten slowly at 2080.00 in the Asian session before a slow rise in the following session to last week's closing high around 2088.00.
With the momentum that has been displayed, a higher increase will be expected for gold this week towards the 2100.00 level or more.
The price will record its latest 3-month high before heading to the all-time record high reached in December last year at 2144.00.
However, the price of gold also remains at risk of experiencing further decline if the situation in the market begins to change.
A break below 2080.00 would expect the price to head first to the nearest concentration level, 2070.00.
Then the price will return to the price surge area starting last week around 2050.00.
