GOLD Analysis - What happens after gold falls below the $ 1,700 level? - Kakiforex | Forex markets for the smart money. GOLD Analysis - What happens after gold falls below the $ 1,700 level? GOLD Analysis - What happens after gold falls below the $ 1,700 level?

March 6, 2021

GOLD Analysis - What happens after gold falls below the $ 1,700 level?

 Meet the concerns of gold investors when the value of the precious yellow metal fell to a lower level yesterday.


On the XAU / USD price chart which measures the value of gold against the US dollar has seen the price fall above the level of 1720.00 until it almost reached the level of 1700.00 last Wednesday.


On Thursday's trading, price movements were seen flat below the Moving Average 50 (MA50) barrier level over the 1-hour time frame indicating a bearish trend signal.


Price tested the resistance of 1720.00 several times in the European session and the New York session but still failed to pass it.


Then, a clearer drop in prices occurred in the New York session following the strengthening of the US dollar after Federal Reserve (Fed) Chairman Jerome Powell's speech reached the price above the support level of 1700.00.


Previous analysts have expected gold prices to fall to the RBS (resistance become support) zone and will likely become a support zone for prices to soar again.



On Friday trading, the price hovered slowly at the 1700.00 level as price resistance while the market will focus on the US NFP job data report in the New York session shortly.


The price decline will be supported at the level of 1680.00 and if the price continues to decline lower, investors will see the gold price record the latest 11-month low.


If the price returns to rise above the 1700.00 level, the resistance level of 1720.00 will be tested before the price rises higher towards the SBR (support become resistance) zone of 1765.00.