Gold trading did not show aggressive movements at the beginning of this week after the market saw a drastic price plunge at the close of last week.
The US dollar currency that affects the change in the value of gold in the market was quite mixed on Monday yesterday, but showed a strengthening in the New York session.
The price of gold managed to display a slow rising pattern starting from the Asian session to the European session, before the strengthening of the US dollar pushed the price down until the close of the New York session.
On the XAU/USD chart which measures the value of gold against the US dollar, the price initially rose to 2029.00 before retreating to around 2020.00.
The slow movement pattern continued today (Tuesday) with the price seen testing the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the XAU/USD chart.
If the price manages to continue its rise past the MA50 barrier and break through the 2030.00 zone, it is likely that the price will be able to reach the 2050.00 level again.
Next, with the current factors supporting gold prices to continue to rise, prices still have the potential to break all-time record highs.
Meanwhile, if the price starts to show failure to continue the increase, investors need to be prepared for a possible price drop.
The support level at 2000.00 is about to return to focus after the price plunge last Friday also tested that level.
If the breakout is lower, a more pronounced bearish price movement could push the price back up to 1950.00.
Gold investors still need to be prepared with this gold trading turmoil leading to another important data which is the inflation of the United States (US) which will be published on Wednesday.
