A bit of a disappointment for gold investors at the close of trading last week when the value of the precious metal plunged back to the $2,000 level.
In the past week, the pattern of rising gold prices has been displayed until the highest level was successfully reached at around $2,048 becoming the highest price record since March 2022.
A strong return to the US dollar at the end of the week has pushed gold prices back lower, but analysts expect prices to potentially move higher in the coming weeks.
The signal is clearer for the Federal Reserve (Fed) to slow down monetary policy after the inflation data of the United States (US) increasingly shows a decline.
Examining the XAU/USD price chart which measures the value of gold against the US dollar, it can be observed that the plunge took place last Friday back to the 2000.00 concentration zone.
A slow increase in prices was shown earlier this week to around the 2011.00 level in the European session.
However, there is a bearish signal for the price of gold which is hovering below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the XAU/USD chart.
If the price rise manages to break through the MA50 barrier and the 2030.00 zone, a more bullish trend reversal will be expected.
Next, the price has the potential to extend the rise above the height reached last week with the main target to go to the 2070.00 zone
On the other hand, if the price of gold plunges lower past the 2000.00 zone, it will be a warning for investors to expect a deeper price drop.
The price could decline towards the previous focus zone at around 1950.00 before the continued decline will target 1900.00.
