Heading into the end of the week, gold performed better today (Friday) with its value increasing more evenly than yesterday.
The US dollar, which moved gloomyly as the American market was also on holiday yesterday in conjunction with Thanksgiving, gave gold some room to recover.
The price increase so far in the Asian session this morning only recovered half of the losses experienced at the beginning of the week.
Looking at the XAU/USD chart, the price is hovering around the 2660.00 level after today's price increase managed to surpass the price level last Wednesday.
The price movement above the Moving Average 50 (MA50) support line on the 1-hour time frame on the chart gives a bullish signal for now, but investors are wary of any risks towards the end of the week.
If the price increase continues beyond the 2670.00 level, it will increase confidence for investors to expect a higher increase in gold prices.
The target is to regain the height before the plunge at the beginning of the week, which is around 2720.00.
If the rise maintains strong momentum, the price could continue its climb towards the height of 2770.00, which was the focus of the previous session.
On the other hand, if the situation is the opposite, the gold price is likely to retreat back down through the trading in the last sessions.
For expectations of a decline in the gold price, the level around 2600.00 is seen as an important zone to be aimed at with the price reaction after reaching its vicinity being watched for further direction.
A more severe fall if it occurs could depress the price to the level previously reached, at around 2540.00.