Opening trading earlier this week, gold prices were seen trading in a range similar to the end of last week with investors still cautiously awaiting the latest indication.
The US dollar, which affects the volatility of gold in the market, was seen as less aggressive at the end of last week after initially showing a strengthening.
The United States (US) economic data that will be published this week will be watched with a focus on inflation data before heading to the FOMC meeting the following week.
If observed on the XAU/USD chart which measures the value of gold against the US dollar, the price appears to be hovering above the 1920.00 zone which is a support for the price.
The movement above the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the XAU/USD chart has also not yet given a sign for the price to continue the previous bearish trend.
In trading since the Asian session this morning, the price that made an increase from the 1920.00 zone is seen testing the level around 1930.00 in the European session.
If the price increase continues, the price is expected to return to the important resistance zone at the height of 1950.00 which was tested at the end of last August and also at the opening of September.
Meanwhile, if the price plunges below the 1920.00 zone again and also breaks through the MA50 support, investors will be alert to the risk of another fall in gold this week.
The continued decline is seen to reach 1900.00 again and the price will also test that important zone.
