According to analysts, the US dollar, which is one of the primary factors, could either help gold to rise to $ 1,920 an ounce or provoke a new sell-off to $ 1,600.

It is worth noting that gold managed to rise to almost $ 1,830 an ounce despite the strengthening of the US dollar last week. However, the USD rate may become critical for gold this week.

A decline in the US dollar can revive the gold market and help it resume growth to $ 1,920, and on the contrary, its additional growth can provoke a sell-off of gold to $ 1,600.

Daniel Pavilonis, Senior Commodities Broker, said that the US dollar is trapped in the long-term trend line of the DXY dollar index:

The US dollar will either pull back or break through upwards. It should be noted that a decline of the US dollar will benefit gold and become an important factor for its growth.

In addition, gold remains very sensitive to the bond market, where some movements may begin due to inflation.

If the US macroeconomic data continues to remain strong, interest rates will begin to shift, which has an inverse correlation with the precious metals markets. If this happens, gold may be under pressure.

There was profit-taking last Friday, which led to a price decline of almost 1%.

According to Senior Commodities Strategist Mike McGlone, gold has fallen about 4% since the beginning of the year, but a favorable macroeconomic environment may mean that gold will continue to rise again. He noted that the growth of the US debt-to-GDP ratio and constant quantitative easing will eventually help gold increase to the level of $ 2,000 per ounce.