There was no significant change for gold trading during this week where the price moved flat without giving a clear indication of the direction of the next move.
This is because investors are still cautiously evaluating the views of Federal Reserve (Fed) Chairman Jerome Powell and other members of the monetary policy that will drive the movement of the US dollar currency.
Last week's trading close saw the US dollar successfully strengthen again following the publication of strong US NFP employment data.
The situation also had the effect of falling gold prices up to $100 from the 10-month high that was achieved last week.
On the XAU/USD price chart which measures the value of gold against the US dollar has seen a significant decline that took place at the end of last week before leveling off this week.
After the fall that occurred, the price of gold since the beginning of this week was seen hovering in the concentration zone of 1870.00 until today (Thursday).
The price moved between the range of the 1886.00 high to the 1860.00 level, but after the price started above the Moving Average 50 (MA50) support level on the 1-hour time frame on yesterday's XAU/USD chart, investors may see it as an early signal for a rally to happen.
If it succeeds in showing an increase again, the price is seen to test the resistance level of 1900.00 which is in the SBR (support become resistance) zone.
Next, the price is seen to return to the resistance zone at the height of 1950.00 which was reached before.
However, if the price falls below the 1870.00 zone, the probability for the price of gold to drop lower is higher.
The price drop is seen to reach around 1830.00 which is one of the previous price focus levels.
