Gold investors are about to face a very 'busy' week due to the very tight economic schedule this week expected to have an impact on the US dollar and influence the movement of gold prices.
Federal Reserve (Fed) Chairman Jerome Powell's speech on Tuesday will be widely watched for any indication of future monetary policy, which could impact inflation expectations and interest rates.
The ISM survey data for the manufacturing and service sectors of the United States (US) will be watched in addition to the US JOLTS job opening report, ADP and then Non-Farm Payroll (NFP) which will be the focus of the Fed.
Examining the movement on the XAU/USD chart which measures the value of gold against the US dollar, in the last session last week, the price showed a downward pattern to around 2644.00 after retreating from the highest level that created a recent historical record of 2685.00.
For the current price movement today (Monday), the price is seen to be in a 'sideway' state hovering below the 2670.00 zone as of the beginning of the European session, after the fall exhibited at the end of last week.
Expectations of a higher increase will still continue if the US dollar remains weak this week with the level of 2670.00 likely to be the focus of the price which is a strong resistance.
If the level is successfully penetrated, it is likely that the price of gold will be able to reach a new high with the focus of investors up to the level of 2700.00.
The price of gold also has the possibility to make a decrease since there is a lot of data that can support the US dollar to strengthen and can make the gold metal weak.
If the price declines and 'closes' below the 2600.00 level, investors will be more confident in expecting the price of gold to start a bearish trend.
The next focus for lower declines is around the range between 2530.00 to 2500.00 with gold price reaction to be observed to determine further direction.
