Gold trading is seen to be excellent, continuing to strengthen its value at the beginning of this week with a surge in prices seen as early as the Asian session starting on Monday yesterday.
The yellow metal asset remained attractive as the US dollar continued to weaken until last week with analysts expecting the US dollar's decline to continue.
Investors, however, remain cautious when observing the movement of gold prices above the important zone of $2,000.
Examining the XAU/USD chart which measures the value of gold against the US dollar, the price that started trading at the beginning of the week above the 2000.00 level has surged in the Asian session yesterday reaching a high of 2018.00.
However, trading that continued into the European and New York sessions was seen to be flat below that level so it continued today.
Although flat, analysts still expect a bullish move for gold that is above the Moving Average 50 (MA50) support level on the 1-hour time frame on the XAU/USD chart.
Price movements are slow until the European session, but it is likely that the situation will change rapidly in the next session when investors await the release of the United States (US) consumer confidence data shortly.
If the price of gold continues to climb, the target is to head around 2030.00 and test that concentration zone.
If it breaks higher, the target will move up to the height of 2050.00.
However, if the price of gold is pushed down again, an attractive price reaction is expected to be shown when it reaches the 2000.00 level.
It will be a bearish signal for gold when the price drops below 2000.00 after breaking through the MA50 support level.
A downward movement in price if it occurs can return to the previous concentration levels such as 1980.00 or 1950.00.
