Opening the October trading window, gold investors will be looking forward to important data tonight (Tuesday) such as JOLTS jobs, US manufacturing and services PMI, the ISM survey as well as the speech of the Federal Reserve (Fed) Chairman.
The data will provide an indication of the current state of the US economy as well as determine the movement of the market including gold.
If economic data supports the strengthening of the US dollar, investors expect the gold metal to be at risk of weakening.
On the XAU/USD chart which measures the value of gold against the US dollar, the price is seen to continue its decline yesterday to around the 2630.00 level after the new 'ATH' was recorded at 2680.00 last week.
At the opening of the Asian session this morning, the price of gold was seen climbing to around 2646.00 until the early trading of the European session.
If the price increase pattern can still be maintained, the 2670.00 level is seen to be a target that needs attention.
If the price manages to cross that level, gold's latest record high will be broken again with the expectation that the price may reach the 2700.00 level.
However, there is also a possibility for the price of gold to decrease (weakening) since there is economic data that will be released tonight that is able to support the strengthening of the US dollar.
If the situation occurs, the 2600.00 level may be a focus level considering that it is a resistance that has become support, and it is seen that many price reactions have occurred at that level before.
Passing the 2600.00 level is a sign that gold will make a decline for a long period of time and the 2530.00 level is expected to be the next price focus.
