Gold trading is seen to fail to continue the positive momentum at the beginning of this week after showing a brilliant surge at the close of last week.
When the United States (US) NFP employment data report was published and saw the US dollar weaken, the price of gold has soared to a price level of $1,870.
This situation can be observed on the XAU/USD price chart which measures the value of gold against the US dollar with the surge displayed giving investors hope for a higher increase in value this week.
But it was a bit disappointing at the opening of trading early yesterday when the price movement was more flat.
The price that has passed the 1870.00 level is seen to be flat above the zone with the highest level reached only around 1880.00.
The horizontal and slow movement continues to be witnessed until trading continues into the Asian session and the European session today (Tuesday).
If the price of gold manages to continue its surge from the 1870.00 zone which is now a support for the price, the target is to reach the height of 1900.00.
Continued gains will continue to record recent 8-month highs.
However, if there is a drop back below the 1870.00 zone, the price is likely to drop below the MA50 support level and trigger the initial signal of a bearish trend change for gold.
If the decline continues, the price is seen to head back to around 1830.00 to test the RBS (resistance become support) zone that was the focus before.
The next further drop in price is expected to return to around 1800.00.
