Gold trading cheered investors on Wednesday yesterday, but the situation may be different today as the market approaches the end of the week.
The US dollar is seen showing a dismal performance following some Federal Reserve (Fed) officials suggesting that interest rate hikes should be temporarily halted to assess the impact on the current economy of the United States (US).
In addition, forecasts for the dismal US NFP jobs report for May also added pressure to the US dollar.
This at the same time gives room for the yellow metal asset to show an increase in its value after declining a few weeks before.
The XAU/USD price chart which measures the value of gold against the US dollar saw a continued climb yesterday reaching the level of 1974.00.
This is as expected by analysts following the price movement which has been back above the Moving Average 50 (MA50) support level on the 1-hour time frame on the XAU/USD chart with a bullish signal.
However, investors saw the bearishness displayed again in today's European session testing the MA50 support towards the 1950.00 zone.
It is not impossible that the price may change direction again in the next trading session in the uncertain atmosphere towards the end of this week.
If the price plunges deeper beyond the 1950.00 zone, the lowest level reached last Tuesday at 1932.00 will be tested.
Further, the price can reach around 1900.00 with a clear bearish movement for gold.
On the other hand, if the price hovering in the 1950.00 zone starts to bounce back up, the bullish pattern is likely to continue.
A break above yesterday's highs will push the price to test the resistance at the 1980.00 zone before reaching the concentration level at 2000.00.
