The opening of the 2022 trading market today (Monday) saw the US dollar gather momentum for an early strengthening in the Asian session continuing on the European session.
Has the US dollar started a move to strengthen after closing trade weakly until the close of 2021 trade at the end of last week?
The depreciation of the US dollar last Friday also pushed gold prices to a recent 5 -week high to the level of analysts' expectations of $ 1,830.
However, investors remain worried about the expectation of a fall in gold prices after this following the projected strengthening of the US dollar in new year's trade.
This follows the hawkish decision of the Federal Reserve (Fed) at a previous meeting in the tightening phase of its policy in anticipation of a faster interest rate hike.
It is likely that the initial strengthening of the US dollar will begin after the US NFP employment data report is published this weekend with the US labor sector forecast to record positive numbers.
The XAU/USD price chart, which measures the value of gold against the US dollar, is expected to decline to the RBS (resistance become support) zone of 1815.00 if the US dollar shows a strengthening since the beginning of the week.
And if the price falls below the Moving Average 50 (MA50) support level on the 1 hour time frame on the XAU/USD chart it will push the price back to the 1800.00 focus level.
However, if the gold price manages to jump past the resistance level of 1830.00, the price will continue to record the latest highs and continue the surge at the end of last week.
The latest high level seen to be the target is at 1850.00 if the price of gold continues to rise higher.
