The focus of gold investors throughout this week, will be focused on economic data to be released such as the manufacturing and services PMI of the United States (US) of the ISM survey, which is expected to offer an insight into the state of important sectors that can also influence the current movement of gold.
Investors will closely monitor the US jobs report including JOLTS, ADP and NFP which will provide clues about the state of the labor market to the Federal Reserve (Fed) ahead of the September FOMC meeting.
These numbers will be an important indicator for assessing the state of the US economy as a whole and may have a major impact on market mood and expectations for Federal Reserve policy.
Based on the XAU/USD chart which measures the value of gold against the US dollar, the price is seen to be moving horizontally below the 2530.00 price zone throughout the past week.
Despite the decline, gold prices are still holding above the 2500.00 zone as investors remain cautious in August's closing trade.
If the price of gold displays an upward pattern this week, the 2518.00 level will be the focus for the price to test that important zone if the price wants to continue the 'bullish' trend.
If the price is able to surpass that level, an important resistance for the price awaits at the level of 2530.00 which is the highest record in history that has been reached.
On the other hand, if the situation changes and sees the gold price fall again, the 2480.00-2470.00 zone is seen to be the focus area if the price shows a 'bearish' trend movement.
For further declines to continue beyond the zone, the price of gold is at risk of falling to around 2430.00 again.
