Gold trading still maintained a bullish trend until continuing earlier this week despite the relatively slow bullish momentum.
This situation is expected to continue until the end of this week as the US dollar is likely to trade weaker ahead of the US NFP jobs data report for May to be published on Friday.
On the XAU/USD price chart which measures the value of gold against the US dollar, the price that has managed to cross the 1900.00 level continues to rise to its latest high again this week.
In the Asian session this morning (Tuesday), the price rose to around 1916.60, recording the latest high of gold prices reached since early January.
The beginning of the European session saw prices start to move downwards again. However, the movement that remains above the support level of Moving Average 50 (MA50) on the 1 -hour time frame still signals a bullish trend movement for gold.
In anticipation of the continuing depreciation situation of the US dollar, commodity market analysts expect the latest target level for gold to reach 1950.00.
The level is a resistance zone that has been tested in September and December 2020 trading where the price found it difficult to break it.
If the price drops below the 1900.00 level and also the MA50 support level, investors need to be vigilant for a situation of re-fall in the price of gold.
For the nearest decline, the price level that needs to be focused on is at 1875.00 and also the RBS (resistance become support) zone of 1850.00.
The lower decline could reach up to the key RBS zone at 1800.00 again which will determine the direction of further gold price movement.
