Gold commodities continued their higher trend at the opening of trading earlier in the week as the US dollar continued to weaken and US bond yields remained flat.
The United States (US) consumer personal expenditure (PCE) price index data which continues to increase gives an indication of the fastest moving inflation since 2005.
Apart from that, the contraction recorded in the US economic growth data in the second quarter has made the hawkish expectations from the Federal Reserve (Fed) less and less.
The US NFP jobs data report due later this week will be the focus of investors with expectations that the labor market will remain strong despite forecasts of a slowdown in job additions for July.
Looking at the price movement on the XAU/USD chart which measures the value of gold against the US dollar, the price moved flat around the 1760.00 zone at the end of last week's trading session after recording a rise to its latest 3-week high.
The opening of the market at the beginning of this week saw the price still hovering in the zone and maintaining a horizontal movement above the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the XAU/USD chart which still signals a bullish movement for gold.
If the price manages to continue its upward move, a further move higher is expected to test the concentration zone at 1785.00 before making a further surge towards the 1800.00 highs thus marking the latest 4-week high.
On the other hand, if the price shows a retracement below the 1760.00 zone, gold investors will be alert for early indications of a bearish trend change again after the price also begins to move below the MA50 support level.
A lower decline for the yellow metal is expected to target the resistance become support (RBS) zone of 1735.00 to be tested, before continuing the decline until reaching the last week's price support zone at 1720.00.
