Gold prices are trading higher after closing another week in positive territory. Looking at the price action over the last three weeks, the shiny metal has been making a series of higher highs and higher lows, and this has helped the precious metal to post three consecutive weeks of gain.
When it comes to the gold price, traders are focused on the strength or the weakness of the dollar index, which is very much dependent on two elements. First, the US economic numbers, and second, the Fed's monetary policy stance.
Although Friday's number was better than expected, but it wasn't exactly thriving. The best you can think of from Friday's report is that the Fed can continue on its monetary policy path, but this doesn't mean that the Fed can begin to increase the interest by more than half a point in each of the upcoming meetings.
This particular fact is helping the gold price to stay above water.
The most important price level for the gold price this week is its resistance which is at 1,900, and the most important economic reading for the yellow metal is the US CPI number which is due on Friday.
If the gold price begins to slide below the 1,830 price level and stays below it, we could see the gold bulls struggling for their lives.