Gold rebounded to start trading well for the opening of the week, reversing last week's decline.
Although the US dollar strengthened, supported by the release of the United States (US) economic survey data in the New York session yesterday, the price of gold continued to show an increase.
Uncertainty in the development of the global tariff war still makes investors cautious and also restores the attraction to gold as a safe-haven asset.
On the XAU/USD chart, which measures the value of gold against the US dollar, a signal of a trend change was displayed at the opening of the first session of the week, seeing the price move above the Moving Average 50 (MA50) support line on the 1-hour time frame.
The price increase that broke through 3270.00 in the European session was then extended in the next session, but the momentum eased slightly.
Continuing the opening of the Asian session this morning (Tuesday) at around 3330.00, the price of gold showed a strong surge until reaching 3387.00 before slowly returning towards the opening of the European session.
With that momentum, the price tends to continue to rise higher with the next target being to break through the 3400.00 level.
Next, the price will return to the target at the 3500.00 level which is the all-time high reached in April.
However, if the gold price retreats back down, the 3300.00 and 3270.00 levels are likely to invite a price reaction again.
The continued price decline will return to the support zone of last week around 3220.00.
