Investors are still wary of gold trading while still waiting for the direction of movement for the US dollar which also affects the yellow metal.
On the XAU/USD price chart which measures the value of gold against the US dollar, the price is seen starting to show more positive movement last week for a bullish signal compared to the plunge that occurred at the end of January.
But the price is still seen struggling to move above the 1800.00 level with the price declining several times testing that important level.
Thursday's and Friday's trading saw the price attempt to fall below the 1800.00 level but rebound.
As for the price increase, the SBR (support become resistance) zone at 1810.00 becomes a resistance for the price to accelerate to a higher level.
The initial strengthening of the US dollar following the market reaction to the US NFP jobs report on Friday also failed to decline lower for prices to return to the 1810.00 zone.
Continuing on earlier trading this week, gold prices are still moving slowly in the Asian and European sessions in the SBR 1810.00 zone, with the expectation that price movements will be more attractive in the New York session.
Passing the increase in the 1810.00 zone will push the gold price to the 1830.00 level to also test the higher SBR zone.
Next, the continued rise is expected to react to the 1850.00 zone that was tested on trading 2 weeks ago.
Meanwhile, if the US dollar manages to strengthen and put pressure on the price of gold, a decline below the 1800.00 level is seen to test the 1780.00 support zone.
The zone managed to curb the fall in gold prices at the end of January before the price showed an upward pattern until last week.
However, if the decline in gold prices passes the support zone, investors will expect a fall to the level of around 1760.00 which was reached in December trading.
