Gold trading did not show an interesting reaction at the opening of the week with the price movement only flat.
The US dollar traded mixed in different sessions still failed to provide a clear direction for gold trading.
On Monday yesterday, the price of gold moved in a slow range and did not change much like the movement situation last Friday.
If you look at the XAU/USD chart which measures the value of gold against the US dollar, the high reached yesterday was around 2328.00 while the daily low was around 2320.00.
The price movement seen still hovering around the Moving Average 50 (MA50) support line on the 1-hour time frame on the chart gives investors hope for the bullish price trend to continue.
However, the strengthening of the US dollar in the New York session yesterday created a risk for the price of gold to fall again.
If the price makes a decline, the support zone at 2300.00 will come back into focus as tested in last week's trade.
A further drop in prices is also not impossible and investors will see gold prices drop lower with a target of around 2270.00.
However, if the price manages to show a strong surge again, the price increase is expected to surpass the level reached last week.
Next, the concentration zone at 2380.00 is seen as an important area that will invite an attractive price reaction around it to provide further direction.
