Gold trading changed its course of movement at the beginning of this week when it showed a relatively positive price recovery.
Gold took advantage when the US dollar failed to maintain the strengthening momentum last week and moved weak especially in the New York session yesterday.
Even so, gold is at risk of falling again with the potential for the US dollar to resume its strengthening as expected by analysts.
Observing the movement on the XAU/USD chart which measures the value of gold against the US dollar, the price has shown an upward pattern since yesterday's Asian session until continuing into the Asian session this morning (Tuesday).
Yesterday's price increase was seen to pass the 2600.00 level indicating a bullish movement signal after being above the Moving Average 50 (MA50) support line on the 1-hour time frame on the chart.
After reaching around 2615.00 in the New York session yesterday, the rise in gold prices continued today until the height of 2626.00.
If there is no change in the current market situation, the rise in gold prices can still continue to higher levels.
Around the 2650.00 to 2570.00 zone is seen as the zone that will be the focus for the price test.
However if the price dips back below the 2600.00 level, it is likely that last week's bearish pattern will resume.
The price is about to approach the support zone of 2540.00 which was tested at the lowest price drop last week.
