GOLD Analysis - Gold Decreases Slightly, But Investors Are Optimistic With Gold Performance

thecekodok

 After reaching the latest high of 5 weeks yesterday, the price of gold fell again in today's trading (Friday).


On the XAU/USD price chart which measures the value of gold against the US dollar, it can be seen that the price managed to break the wall of 1745.00 before the rise reached a high of 1758.00 in the New York session yesterday.


However, trading since the Asian session continued into the European session today saw the price of gold show a bearish pattern back to the level of 1745.00 which forms a new RBS (resistance become support) zone.


Testing the zone, the price is also supported by the Moving Average 50 (MA50) support level on the 1 hour time frame of the price movement which will signal the further direction of the gold price.


The decline in prices was also driven by the re -strengthening of the US dollar after the US treasury yields rebounded.


However, if the US dollar depreciates again, the price of gold will continue to rise to the SBR zone (support become resistance) 1765.00 with around 200 pips of price increase.



The price that managed to pass the zone strengthened analysts' expectations for the price of gold to reach the 1800.00 price level again.


On the other hand if the price plunges below the RBS 1745.00 zone, investors need to be vigilant for a bearish trend change situation again for gold trading.


The decline is expected to return to the level of 1720.00 before going lower at the support zone of 1700.00.