Despite the slow market movement early in the week yesterday, gold prices are still showing an upward trend following a strong surge at the close of last week.
Investors are optimistic that gold will trade well this week after the price has risen above the $3,300 level, indicating renewed attraction to the safe-haven asset.
Dismal employment data and administrative and political instability in the United States (US) for now will expect an increase in gold demand in the short term.
However, investors remain wary of the risk of a re-fall in gold like last week's trading.
If we examine the XAU/USD chart that measures the value of gold against the US dollar, the price has declined throughout last week, touching a weekly low of around 3270.00 before rebounding when the NFP report was published.
Ending trading at the close of the last session last week around 3360.00, gold prices continued to rise again on Monday, reaching a high of 3385.00.
Resuming trading today (Tuesday), prices slowed in the Asian session and showed a slight decline towards the opening of the European session.
Despite the weak momentum, investors still expect an increase for gold with a price movement signal above the Moving Average 50 (MA50) support line on the 1-hour time frame on the chart.
For higher expectations of an increase, the nearest target level is at 3400.00 to be reached before attempting to surpass the July trading high around 3440.00.
However, if there is a further decline, the 3300.00 level is likely to invite an attractive reaction in gold prices.
If the decline continues, the price will reach last week's low at 3270.00 before recording a new low.
