Gold trading today (Tuesday) is seen hovering again in the 'magnetic zone' price at $2,000.
The US dollar, which affects the movement of gold, moved strongly at the beginning of the week yesterday, continuing the strengthening momentum as shown last Friday.
Thus, the price of gold was pushed lower yesterday, but analysts see that there is still potential for gold to recover and rise again this week.
Judging the price movement on the XAU/USD chart which measures the value of gold against the US dollar, the price of gold has plunged from the 2048.00 level to below the 2000.00 level on Friday.
Resuming trading on Monday yesterday, the increase was initially displayed to the level of 2015.00 before plunging in the New York session to reach the level of around 1981.00.
However, the price bounced a little towards the end of the session before the increase continued in the Asian session this morning touching the 2000.00 level again.
Until connecting to the European session, the price is flat at the 2000.00 level, and the price movement is still seen to be below the Moving Average 50 (MA50) level in the 1-hour time frame of the XAU/USD chart indicating that the signal is still bearish for gold.
If a stronger surge occurs, the price above the MA50 barrier will continue to rise towards the 2030.00 zone before challenging the highs reached last week.
If a new high is successfully recorded this week with the bullish pattern displayed, the target will be for the price towards 2070.00, the highest zone recorded in March 2022.
On the other hand, if the price plunges below the 2000.00 level, the bearish pattern will continue again with the expectation that the price will go to the 1950.00 concentration zone.
Next, for the continued lower decline seen could reach up to around 1900.00 for the price to record the latest 5-week low.
