The price movement of gold this week is seen to be flat, hovering between the $3,340 to $3,280 zone in a market atmosphere that is still 'foggy'.
This is due to investors taking a more cautious approach while observing the development of Donald Trump's tariffs which are back in the focus of the market.
The 90-day tariff suspension period ended last Wednesday (July 9), but Trump announced an extension to August 1.
Gold has not shown significant price movement, but investors should be prepared for any surprises.
Observed on the XAU/USD chart which measures the value of gold against the US dollar, the price showed a decline last Tuesday before leveling off on Wednesday at the lowest level this week near 3280.00.
The slow increase in gold prices brought the end of the week to around 3340.00 again.
The price moving back above the Moving Average 50 (MA50) support line on the 1-hour chart provides an early signal for bullish movement.
For the price increase to continue, it is likely that gold will be able to regain the 3400.00 level.
If there are clear indications that support a strong gold price, the 3500.00 record previously achieved will be challenged.
On the other hand, the risk for gold to plunge if the price moves back below the 3300.00 level.
The expectation for the continuation of the decline in gold prices is the possibility of reaching around 3200.00 and further lower.
