Gold closed last week's trading on a strong note as it showed a resurgence in price versus flat on the movement pattern from the beginning of the week.
The weakening factor of the US dollar became the catalyst for the surge in gold prices since Thursday when it was influenced by the gloomy reading of the United States (US) economic data.
The situation this week will be influenced by the most important indicator data, which is US inflation, which will give an answer to the question of the Federal Reserve (Fed) in determining their interest rate cut.
Gold is also expected to receive a significant impact with the market reaction when the data is published.
If you look at the XAU/USD chart that measures the value of gold against the US dollar, after leveling above the 2300.00 zone, the price of gold has soared to a height of 2378.00.
Continuing the trading at the beginning of this week, the price that opened around 2360.00 in the Asian session this morning has displayed a slow decline pattern to around 2350.00.
Price movements at the beginning of the European session were seen testing the support line of the Moving Average 50 (MA50) on the 1-hour time frame of the chart.
If there is a rebound for the price to continue the bullish pattern of last week, the high level on Friday will be overcome.
A higher increase in the price of gold will again target the 2340.00 zone which became the highest record of all time reached last April.
While the forecast is for a price drop after the price drops below the MA50 support, the 2300.00 zone is likely to return to the price target.
If the zone fails to support the price like last week, it is not impossible for gold to break lower before heading to the 2270.00 focus zone.
