Investors' hopes of seeing gold prices rebound appear to have eased again as trading in the yellow metal eased again on Tuesday.
This is due to the recovery of the US dollar after declining earlier in the week as the market reacted to the ISM survey data of the United States (US) manufacturing sector which had been published with a contractionary figure.
The strengthening of the US dollar in the European session yesterday failed to continue in the next session following the JOLTS employment data recording a decline to the lowest level since February 2021.
Thus, the US dollar, which is at risk of continuing to weaken, is seen to be restraining the further fall in gold prices for now.
The price movement on the XAU/USD chart which measures the value of gold against the US dollar is seen to remain flat since last week with the 2320.00 level tested earlier this week as a support level.
The price fluctuation movement around the Moving Average 50 (MA50) line on the 1-hour time frame on the chart makes it difficult for investors to determine a clearer direction.
The next indicator will be evaluated on the US NFP employment data reading at the end of next week which will also influence the Federal Reserve's (Fed) monetary policy decision.
If the price manages to bounce back to make an increase, surpassing last week's trading level next week will expect the price to reach the concentration zone at 2370.00.
Next, the increase in the price of gold if it continues is expected to reach a height of around 2430.00.
On the other hand, if the price of gold falls lower, the expectation is the support level at 2300.00 which will be tested.
If that level is also breached, the price drop target will move to around 2270.00 as well.
