Gold has been trading in a limited price zone for the past few weeks, showing no signs of falling, but also not showing any encouraging gains.
Investors are still evaluating all the factors in the market that are currently affecting gold, including global tariff developments and other geopolitical issues of focus.
If we look at last week's pattern, despite the decline, the value of gold has gradually increased again, indicating that demand for the safe-haven asset is still positive.
Examining the movement of the XAU/USD chart, which measures the value of gold against the US dollar for last week, the highest level reached was 3377.00 while the lowest price was 3310.00.
After hitting the lowest level on Thursday, the price of gold began to increase again on Friday with trading in the last session of the week ending near 3350.00.
However, with the price movement above the Moving Average 50 (MA50) support line on the 1-hour time frame on the XAU/USD chart, it shows an early signal for the bullish pattern movement to begin.
For the rise in gold prices, the immediate target is to break through the 3400.00 level which will take the price to a higher level.
If there are clear indications for an increase, the price will definitely look back up to the 3500.00 level as the highest landmark to be broken.
However, if the gold price shows a decline this week, the 3300.00 level is expected to be the target and invite a price reaction.
For a decline that extends to lower levels, the 3200.00 zone can be broken again.
