Despite the gloomy movement throughout the week, gold trading managed to show an improvement at the end of last week’s trading.
On the XAU/USD price chart which measures the value of gold against the US dollar has seen the price successfully make a rise last Friday to the resistance zone of 1950.00.
The zone was also tested in the previous week's trading which remained preventing the price from making a rise.
Investors did not place high hopes for a rise in gold prices this week following hawkish indications by the Federal Reserve (Fed) in its policy tightening measures.
United States (US) inflation data will be the main focus that will drive the direction of gold movement this week.
A higher rise can be expected as the price gives a bullish signal after moving above the Moving Average 50 (MA50) support level on the 1 -hour time frame on the XAU/USD chart.
If the rally manages to break the resistance at 1950.00, investors will be more optimistic to expect the price to continue rising and then will test the SBR zone (support become resistance) at 1970.00.
Further price increases will target the 2000.00 focus level for movement on a clearer bullish trend.
On the other hand if the 1950.00 zone still serves as a resistance for gold to rise this week, the decline will be expected to reach the support level at 1900.00.
And a lower drop below that level could hit the zone around 1870.00 to record the latest 8 -week low.
