GOLD Analysis - Can the Price of Gold Break through $ 1,875? - Kakiforex | Forex markets for the smart money. GOLD Analysis - Can the Price of Gold Break through $ 1,875? GOLD Analysis - Can the Price of Gold Break through $ 1,875?

May 20, 2021

GOLD Analysis - Can the Price of Gold Break through $ 1,875?

 The movement in the price of gold this week satisfied investors as it continued to meet the forecast to maintain its appreciation.


It can be seen on the XAU/USD price chart that measures the value of gold against the US dollar has continued to rise since the beginning of the week after successfully jumping from the 1850.00 level.


However, the bullish momentum was seen to be slower in yesterday's trading after displaying a more flat movement below the 1875.00 resistance level that was successfully reached.


Even so, the price is still seen moving on a bullish trend with a movement above the support level of the Moving Average 50 (MA50) on the 1 -hour time frame on the XAU/USD chart.


The rise in gold prices continued to be driven by the continued depreciation factor of the US dollar earlier this week.


The depreciation of the US dollar will continue due to investor vigilance ahead of the FOMC meeting minutes report which will be released early Thursday morning.


However, investors need to be vigilant if the US dollar regains strength. The US treasury yields that are starting to show gains could be a factor supporting the re -strengthening of the US dollar.



If the price declines, the nearest support level is at 1850.00 for the price to return to the surge level at the beginning of the week.


For the lower decline to continue, the price may fall back up to the level of 1800.00 which is the latest RBS (resistance become support) zone.


However, if the price manages to jump to continue the bullish trend, passing the resistance level of 1875.00 will then target the latest high of the gold price at 1900.00.


A rise to that level will record the highest level gold price reached for a period of 4 months.