The strengthening of the US dollar at the end of last week not only put pressure on other major currencies, but also dragged down the price of gold.
The situation was boosted by the United States (US) NFP employment data report which was published with a relatively good reading for May with job gains and an increase in average earnings that beat forecasts.
This also signaled for the Federal Reserve (Fed) to delay plans for interest rate cuts expected in September.
Examining the XAU/USD chart which measures the value of gold against the US dollar, the price managed to rise to the level of 2387.00 last Friday before an aggressive plunge was then displayed.
With the reaction to the published NFP report, the price of gold has plunged below the 2300.00 level.
Around the 2287.00 level that the price hit at the close of the last trading session last week and the price movement remains slow below the 2300.00 level at the opening of the week earlier.
With last week's strong momentum, the price is expected to continue its lower decline with the next focus zone at 2270.00 to be tested.
A continued decline beyond the zone further expects the price to reach around 2222.00 to record the latest 11-week low.
However, if the price manages to climb back above the 2300.00 level, the price increase will likely try to reach the previous 2380.00 concentration zone.
