Gold trading at the end of last week was seen moving more flat around the $2,400 zone without continuing the surge pattern that occurred on Thursday.
Investors are optimistic that the price of gold will move to a higher level after the weak inflation data published by the United States (US) caused the US dollar to experience a decline, thus supporting the increase in the price of gold in the market.
Investors examine the movement of the yellow metal on the XAU/USD chart which measures the value of gold against the US dollar.
On Thursday, the price showed a surge from the 2380.00 level to a peak of 2420.00, but returned to around 2400.00 as the end of the week approached.
Technically, the gold price is still moving in a bullish trend seeing that the price is above the Moving Average 50 (MA50) support line on the 1-hour time frame on the XAU/USD chart.
The price movement at the beginning of this week is seen still hovering around 2400.00 and testing the MA50 support level at the beginning of the European session.
If the US dollar remains weak, the price of gold has the potential to extend its rise to higher levels with an initial target of surpassing the 2430.00 level.
Next, the price will record this week's latest high level to reach a higher target of around 2500.00.
Meanwhile, if the price of gold falls again after this, the initial price drop is expected to react around 2380.00 first.
With the decline continuing, investors should prepare to see the price move down towards the concentration zone at 2300.00.
