Last week was a dramatic one for gold trading with unexpected movements on display for investors.
Gold has managed to break all-time high price records and the latest high for gold is now at $2,080.
This follows the impact of the surge in gold prices after the FOMC meeting early last Thursday.
But it was a different story on Friday before the close of trading for the week when the focus was on the United States (US) NFP employment data report.
Following the encouraging reading of the report for the month of April, the US dollar has managed to strengthen and at the same time put pressure on gold which has experienced a decrease in price.
It can be observed on the XAU/USD chart that measures the value of gold against the US dollar with the price plunging back to reach the 2000.00 level.
The price drop that occurred was seen to have covered the gains that occurred in the previous trade when the price recorded the latest high level.
The price started a dive from the level around 2050.00 and has penetrated the Moving Average 50 (MA50) level on the 1-hour time frame on the XAU/USD chart which is a sign of a change in the bearish trend.
As soon as the plunge touched the 2000.00 level, the price of gold was seen to bounce back before then closing the last trading session around 2015.00.
A slow bullish pattern was exhibited in continued trading this recent week, but remained below the MA50 barrier until the European session.
Analysts expect the price decline to continue further, but will assess whether the price will break lower below the 2000.00 focus level.
If true, the bearish movement of the price will be expected to continue with the next target for the price heading up to 1950.00.
However, if the price manages to make an increase beyond the MA50 barrier, it is likely that the 2050.00 level will be reached again.
With bullish indications for the price, the successful rally will continue to challenge the record high that was set last week.
