The situation changed at the end of the week for gold trading which has provided some relief to investors in the yellow metal.
This is because the significant fall in prices last Tuesday has shown a recovery with prices again trading above the $2,000 level.
The strengthening of the US dollar when the United States (US) inflation data was published failed to continue as the momentum faded as it saw a decline towards the end of the week, giving room for gold prices to increase.
Investors pay attention to price movements on the XAU/USD chart which measures the value of gold versus the US dollar with the lowest fall in prices this week reaching around the 1984.00 level.
However the price has recovered again overnight seeing its rise past the key level at 2000.00.
It also gives a bullish signal for gold if the increase shown is seen breaking through the 50 Moving Average (MA50) obstacle line on the 1 hour time frame on the XAU/USD chart.
Price movements started slowly around 2005.00 when trading continued in the Asian and European sessions today (Friday).
It is possible that the market is waiting for US economic data to be published in the last session which will influence gold price movements.
If the price increase continues again, the 2030.00 zone will be tested once again as in last Tuesday's trading before a significant drop occurs.
Breaking out of the zone would push the rally higher reaching around 2050.00.
However, if the gold price shows another fall, possibly breaking the 2000.00 level and the MA50 support, this will be a danger warning for investors.
Gold prices will be at risk of dropping lower and may exceed the previous 1984.00 level before breaking into the next support zone at 1970.00.
