The price of gold on Friday made a very drastic increase after Jerome Powell, the chairman of the Federal Reserve (FED), strengthened the expectation that the central bank of the United States (US) will reduce the interest rate in September later at the Jackson Hole symposium event last Friday.
The market's focus this week will be on data that will be released such as Unemployment Claims and preliminary Gross Domestic Product (Prelim GDP q/q) this Thursday.
Market sentiments such as tensions in the Middle East may also be expected to influence the gold market by giving an advantage to its price as the asset is a 'safe-haven' among investors.
Based on the daily chart, the price of gold is still making an 'uptrend' movement after making a temporary drop of $2508.
On the XAU/USD chart which measures the value of gold against the US dollar, the price is around 2521.00 after the decline reached around 2501.00.
If the price wants to go down again, the 2511.00 level will be the target for the price to test the important zone.
Crossing that zone will signal a bearish trend to continue with the $2499.00 level being the next target.
For the price to do a 'bullish' trend, the price of gold has the potential to rise to resistance at $2529.00.
The expectation of a higher price is seen to be quite difficult to determine if the increase continues because the confidence in the value is not yet 'brave' enough to climb higher.
