The movement of gold prices will also certainly not miss the impact of the publication of the United States (US) NFP employment data report at the end of last week due to the influence of the US dollar currency.
When the report was published, the price of gold was seen to decline following the initial strengthening of the US dollar. However, the price stabilized again and rose again after the US dollar ended the last trading session of the week weak again.
Examining the price movement on the XAU/USD chart which measures the value of gold against the US dollar, the price seen hovering in the 1800.00 height zone plunged momentarily to the 1780.00 zone as soon as the NFP report was published.
However, the price of gold managed to bounce back from the RBS (resistance become support) zone to close the end of session trading at the 1800.00 level again.
Still moving in a bullish trend, the price drop is also seen to fail to break through the Moving Average 50 (MA50) support on the 1-hour time frame on the XAU/USD chart before rebounding.
The movement of gold prices remained interesting when continuing the opening of the market earlier this week when the increase continued in the Asian session this morning (Monday) passing the 1800.00 zone.
Gold's latest high was reached around 1810.00 for a 5-month record high.
However, the price of gold made a further decline in the European session to drop below the 1800.00 level and test the MA50 support level.
If the price rebounds to continue the gains in the New York session, gold prices are expected to surpass the levels reached recently and record new highs again this week.
A further price increase is expected to reach a height of around 1830.00 after the last time gold prices traded at that level last June.
On the other hand, if the decline continues to break through the MA50 support, investors will start to be wary of a possible fall lower for gold.
The initial decline will test the RBS 1780.00 zone first before continuing the decline to the previous week's focus zone at 1760.00.
