After last week's turmoil, gold investors will look forward to important data throughout this week to determine the movement of gold prices with the main focus being on the United States (US) inflation data.
The NFP employment report last Friday showed a positive figure with the unemployment rate recording a decrease from 4.3% to 4.2% while the increase in employment also increased when compared to the previous month which was from 89,000 to 142,000 but did not reach the set target figure.
Investors are expecting a less aggressive interest rate cut as previously expected which is 50 basis points following the positive August NFP data.
Based on the XAU/USD chart which measures the value of gold against the US dollar, the price of gold is seen to be close to breaking the latest record when the reaction to the NFP data was published but failed when it plunged from a height of 2529.00 to reach 2485.00.
Resuming trading at the opening of the week, the price was seen hovering around 2500.00 before showing a decline in the European session.
With last week's momentum, the price shows a tendency to continue the decline to the 2470.00 zone.
However, to reach the zone, the price must first pass the level of the fall last Friday around 2484.00.
If the increase occurs, the price of gold has the potential to reach the 2520.00 zone as a focus resistance zone to be tested.
However, the 2500.00 level needs to be crossed first before the price continues to rise higher.
