A good close of June trading for the gold commodity as prices showed a recovery from the fall at the end of last week.
At first the price was seen to fall to the level of $2,300 but managed to rise again due to the dismal performance of the US dollar which gave space to gold trading.
The United States (US) PCE price index data published in the last session of the week also recorded a less encouraging reading.
If the important focus data this week also comes with readings that are not in favor of the US dollar, gold prices have the potential to rise higher.
Gold price movements can be observed on the XAU/USD chart which measures the value of gold against the US dollar.
The middle of last week saw the price drop to around 2300.00, but managed to bounce back up.
However, the surge in prices that continued at the end of the week is seen to have started to slow down and investors are also starting to be cautious for the close of trading in the second quarter of 2024.
The price that has surged past the Moving Average 50 (MA50) line on the 1-hour time frame on the XAU/USD chart is giving a bullish signal to gold investors with a rise reaching a high of around 2340.00.
However, the price opened slowly and flatly at the beginning of this week around 2325.00 and was also seen testing the MA50 support line.
If the price increase continues again this week, the level of 2340.00 last week will be overcome before the price goes to the high level reached in the previous week around 2368.00.
Next, the 2380.00 zone is waiting to be tested, which is one of the focus zones for gold prices in previous trades.
On the other hand, be alert if the price shows a lower decline earlier this week and signals a bearish trend change again.
The price drop is expected to approach the 2300.00 support zone that was reached last week.
Continued decline after passing the important zone will expect the price to reach around 2270.00.
