Gold trade extended gains in the New York session yesterday as prices bounced back after recovering from early declines in the previous session.
The current market situation which sees the US dollar still moving weakly pushes the yellow metal to increase in value.
Ahead of the publication of the United States (US) NFP employment data report with gloomy expectations, investors also assessed the dovish view of some members of the Federal Reserve (Fed) who saw interest rate hikes as having to be temporarily halted.
The effect of monetary policy setting needs to be observed first with the data that will be published later to determine policy changes that are appropriate to the economic situation.
Thus, the US dollar which is expected to remain weak will continue to give room for gold prices to reach higher levels.
The XAU/USD price chart that measures the value of gold against the US dollar is watched by investors.
At the beginning of yesterday's European session, the price was initially seen dipping to 1950.00 before the price jumped again until it reached the height of the 1980.00 zone which was the price resistance zone last week.
The price rebound above the Moving Average 50 (MA50) support level on the 1-hour time frame on the XAU/USD chart indicates that the bullish pattern will continue.
But investors will be more careful with the risk of movement at the close of trading this week.
Flat in the 1980.00 zone today (Friday), prices are expected to be more lively in the New York session shortly with the reaction after the NFP data is published.
If the increase continues, the price can reach the target level of 2000.00 again after the price plunged from that level in the middle of last May.
However, if the price plunges below the MA50 support level, the 1950.00 zone is seen to once again be the initial destination for the price.
Further decline if it occurs will be to the lowest level reached on Tuesday around 1932.00 before continuing the decline to the next concentration level at 1900.00.
