Gold trading on Monday yesterday was seen to be more positive by reducing some of the losses in the past week after the price dropped back below the $2,000 level.
After the pressure of volatile market movements last week, the US dollar weakened again at the beginning of this week, meeting the forecasts of analysts who expect the king of the currency to return to its track based on the majority of the market's expectations for the Federal Reserve (Fed) to further ease monetary policy.
Thus, the depreciation of the US dollar will give an opportunity for gold to rise again.
It can be observed that the price movement on the XAU/USD chart, which measures the value of gold against the US dollar, has shown an increase again at the beginning of the week.
Continuing trading in the Asian session today (Tuesday), the price managed to re-touch the important level of 2000.00 with investors hoping to see the price of gold above that level again.
Yesterday's rise which also crossed the Moving Average 50 (MA50) barrier on the 1-hour time frame on the XAU/USD chart added to the optimism of investors with the bullish signal.
Prices slowed below the 2000.00 level in the European session this afternoon, but price movements are expected to be more vigorous entering the opening of the New York session shortly.
If the price of gold soars through the 2000.00 level, the chance for gold to record a new high this week will be brighter.
Next, the 2030.00 zone will be the initial focus area to be tested first before the price will try to reach the previous high at 2048.00.
Meanwhile, if the performance of gold loses again this week, failing to pass the 2000.00 level is likely to see the price drop back to last week's support level around 1970.00.
If the lower breakout price continues to decline, the concentration zone around 1950.00 will be waiting to be tested and it is expected that there will be an attractive price reaction around that area.
