Although somewhat disappointing, it still gave relief to investors when gold trading at the end of last week was flat and showed no significant reaction when the United States (US) NFP employment data report was published.
Although the price of gold did not jump high, investors were relieved due to the lack of a sudden price drop like in previous situations.
The report was mixed with the increase in jobs in November recording encouraging figures, but the unemployment rate also increased from expectations to remain as before.
On the XAU/USD price chart which measures the value of gold against the US dollar, the price moved slowly last Friday in the average range of 26450.00 to 2625.00.
The price increase was also seen to be stunted with price movement limited below the Moving Average 50 (MA50) resistance line on the 1-hour time frame on the chart.
The price movement that continued trading at the beginning of this week is still seen to be flat but there is an attempt to rise to surpass the 2650.00 level.
If the higher rise is successfully continued in the following sessions, the 2670.00 level is likely to be overcome.
With a higher rise, the high of 2720.00 reached at the end of November will be the target.
However, on the contrary, if the price shows a fall this week, the focus zone at 2600.00 is expected to be reached and the price reaction around that zone will be observed.
Breaking lower and also surpassing 2580.00 will expect a more severe fall in gold to around 2540.00 to 2500.00.
