After a few days of price increases, gold trading began to slow down over the weekend while investors monitored key issues hovering in the market that also affected the precious commodity.
The XAU / USD price chart shows a bullish pattern this week with the price remaining above the Moving Average 50 (MA50) support level over the 1 hour time frame showing a bullish trend.
On Thursday's trading, the price, which had made a weekly high to around 1843.00, again showed a decline to the MA50 support level.
However, the price rebounded until the New York session ended and closed around 1840.00.
The price is still moving horizontally below the 1850.00 level on Friday with the expectation that the price increase will test the SBR (support become resistance) zone.
While the price decline is seen to test the dynamic support of MA50 and if the price succeeds, the next price support level is seen at 1800.00.
To monitor further price movements, investors will continue to focus on the development of vaccine issues as well as US economic stimulus packages.
Both factors that influence the US dollar trade also affect the movement of gold prices in the market.
