The price of gold bounced back in trading last Friday as the last session of the week closed June and ended the second quarter of 2023 this year.
Prior to the rebound, the price of gold had shown a declining pattern throughout the week in addition to being pressured by the strengthening factor of the US dollar currency.
With hawkish signals repeated by Federal Reserve (Fed) Chairman Jerome Powell in addition to strong US economic growth data, gold was pushed down to the $1,900 price level.
If examined on the XAU/USD chart which measures the value of gold against the US dollar, the 1900.00 level is an important zone to be tested but the price still manages to stay above it.
On Friday, the decline of the US dollar saw the price of gold rise again from 1900.00 to the 1920.00 level before slowly closing the last trading session around that.
Having crossed the Moving Average 50 (MA50) barrier on the 1-hour time frame on the XAU/USD chart, analysts are warning investors to be cautious with the early signal of the price change.
If the price of gold manages to break through the 1900.00 level this week, the price increase is likely to be driven to higher levels.
The target is to pass the 1940.00 zone and return to the concentration zone which is at the height of 1950.00.
On the other hand, if the surge at the end of last week is only temporary, the price will decline again approaching the current support zone at 1900.00.
If the price makes a lower decline and penetrates 1900.00, the price is expected to drop further with the latest target moving to the 1870.00 zone.
