Gold trades showed a slow recovery at the opening of the week to get back closer to the $2,600 level after last week's lower drop.
The continued strengthening of the US dollar is also seen to have a lasting impact on the value of gold, which has changed from its previous excellent performance.
For 2 weeks in a row, gold prices have fallen after breaking an all-time high at the end of October and reaching a high of $2,790.
However, until last week the price of gold had plunged to $2,540.
Price movements are observed on the XAU/USD chart which measures the value of gold against the US dollar which still maintains a downward movement pattern.
The initial signal of a trend change was observed earlier this week after the price started above the Moving Average 50 (MA50) support line on the 1-hour time frame of the chart and started to show upside.
In the Asian session this morning, the price made an increase approaching the 2600.00 level, but retreated back down to around 2580.00.
Investors are still waiting for clearer indications to assess the direction of further gold price movements.
If it succeeds in rising past the 2600.00 level, it will further strengthen the expectation for the price to continue rising higher in addition to the signal for the bullish trend movement to begin.
The price increase target is in the 2650.00-2670.00 zone which was the focus zone in the previous trading.
However, it is not impossible for the price of gold to decline again in the following sessions and resume the decline pattern of last week.
The drop in price is expected to reach the 2540.00 zone as tested last week before extending further down past 2530.00.
