Thursday, October 22, 2020

GOLD Falling Again, This Is An Analysis On The XAU / USD Chart

 The move reassured the gold price on Wednesday trading after heading to its highest level this week following being influenced by the depreciation of the US dollar.

On the XAU / USD price chart which measures the price of gold against the US dollar, it can be seen that the price of gold remains above the level of 1900.00 but yesterday's rise has managed to reach back to last week's high around 1930.00.

However, the strengthening of the US dollar in the Asian session on Thursday pushed the price back into the RBS zone (resistance become support) around 1913.00.

Price also tested the support level of Moving Average 50 (MA50) on the 1 hour time frame for further price direction signal.

The beginning of the European session is like seeing an increase that wants to be displayed by the price of gold.

If US economic stimulus package sentiment gives a positive result, the US dollar will depreciate and make room for gold prices to rise.

The increase will re-test the resistance zone 1931.00 which has been tested since last week but has not yet been successfully penetrated.

A bearish move below the MA50 dynamic barrier will give an early indication of a bearish trend change on the XAU / USD chart.

The price level of 1900.00 will return to the focus on the next decline in prices for investors to assess the direction of further movement for gold trading.