GOLD Analysis - Gold Soared To 2 -Week High - Kakiforex.com - Financial Market Media No. 1 in the World GOLD Analysis - Gold Soared To 2 -Week High GOLD Analysis - Gold Soared To 2 -Week High

March 18, 2021

GOLD Analysis - Gold Soared To 2 -Week High

 Good news for gold investors when the FOMC meeting early Thursday morning has caused the US dollar to depreciate significantly.


This has given room for gold prices to rise again to resume the upward momentum of the past week.


The US dollar experienced a sharp depreciation following the market's reaction to a dovish speech by Federal Reserve (Fed) Chairman Jerome Powell after interest rates were kept unchanged.


The price movement on the XAU/USD chart which measures the value of gold against the US dollar has exhibited a spike in the price of gold around 200 pips past the resistance zone of 1740.00.


The situation has strengthened analysts' previous expectations for gold to head to the 1800.00 price target again.


Closing the New York session around 1745.00, the price continued to rise again in the Asian session to a high of 1755.00 but investors were anxious to see the price of gold fall again in the European session.


The drop in prices to below the 1740.00 level again was a follow -up to the surge in US treasury yields to the latest highs making demand for the US dollar rise again.



The re -strengthening of the US dollar in the European session has pushed gold prices to lows again testing the Moving Average 50 (MA50) support level on the 1 -hour time frame of price movement on the XAU/USD chart.


However, analysts still see the price of gold will resume rising to head to the resistance level of 1765.00 and test the SBR (support become resistance) zone.


A price increase that successfully passes the zone will then reach the main focus level of 1800.00.


On the other hand if the price continues to fall lower, the support level is seen at 1720.00 for the expectation of a bearish trend situation.