The gold market suffered a drastic fall following the US dollar's strengthening yesterday when the United States (US) service PMI data was published with strong figures.
The data gauged the health of the US economy with the services sector showing positive expansion in August.
It is expected that the gold market will bounce back after the Jackson Hole symposium starts today.
The strengthening of the sector has benefited the USD currency but the situation has pressured the price of gold which failed to sustain the increase after reaching the latest high in history.
Based on the daily chart, the price of gold is currently in a sideways upward trend after displaying a downward pattern towards the end of the week.
On the XAU/USD chart which measures the value of gold against the US dollar, the price is around 2500.00 again today (Friday) after yesterday's drop to around 2470.00.
If the price wants to go down again, the 2470.00 level will be the target for the price to test the important zone.
Crossing the zone will signal the price decline to continue with the 2454.00 level being the next target.
For the price to do a bullish trend, the price of gold has the potential to rise to the height of 2530.00 again if the resistance at 2500.00 can be overcome.
For higher gains to continue, gold prices will continue to break recent record highs.
