Gold trading at the beginning of the week yesterday looked positive with a slow increase exhibited when the US dollar currency that affects the movement of gold is still moving weakly following the pace at the close of the week already.
The United States (US) market was closed for a public holiday yesterday and analysts expected price movements to slow down as well.
In addition, investors will also be vigilant this week awaiting further indications regarding US monetary policy with statements to be delivered by members of the central bank as well as important economic data to be published such as the PCE price index.
Therefore, even though there was a ray of gold at the beginning of the week, the risk of the price falling again is still there.
Examining the XAU/USD chart which measures the value of gold against the US dollar, the price is seen to show a slight increase in the New York session yesterday to a level around 2375.00.
After leveling off around that until resuming trading in the Asian session this morning (Tuesday), prices started to dip slightly early in the European session and tested the Moving Average 50 (MA50) support line on the 1-hour time frame on the XAU/USD chart.
If the price bounces back successfully, the increase that will continue is seen to hit the initial resistance in the 2370.00 zone.
If a strong rally is shown to break through that zone, the rally can be expected to head around the 2430.00 high.
On the other hand, if the price continues to plunge below the MA50 line, the price risks continuing to fall lower than last week's level at around 2330.00.
Next, the continuation of the decline will see the important level at 2300.00 tested and the price reaction will give an indication of the direction of the next movement.
