GOLD Analysis-Investors Start Caution After Gold Loses! - - Financial Market Media No. 1 in the World GOLD Analysis-Investors Start Caution After Gold Loses! GOLD Analysis-Investors Start Caution After Gold Loses!

June 2, 2021

GOLD Analysis-Investors Start Caution After Gold Loses!

 As investors already know, changes in the value of the US dollar in the market will affect the inversely proportional fluctuations in the value of gold.

In Tuesday’s trading yesterday, the re -strengthening factor of the US dollar has pushed the decline in gold prices dampening expectations for a higher surge.

It can be seen that the price on the XAU/USD chart which measures the value of gold against the US dollar started to decline again after reaching the latest high of 1916.60 after rising in the Asian session yesterday.

A more significant decline was seen in the New York session when the focus on the issuance of ISM survey data of the manufacturing sector in the United States (US) recorded an increased reading.

Pushing the re -strengthening of the US dollar, the price was pressed again to record a daily decline of around 230 pips hitting 1892.00 before the price movement slowed back around the 1900.00 focus level continuing on Wednesday’s trading.

A drop below the Moving Average 50 (MA50) support level on the 1 -hour time frame of the price movement on the XAU/USD chart also makes investors wary of the initial signal of a lower decline despite still moving in a bullish trend.

Expectations for a lower decline will test the 1875.00 level before reaching the 1850.00 level which is in the RBS zone (resistance become support).

A clearer bearish trend would expect the gold price decline to return to the 1800.00 level.

However, if the decline is just a price correction, investors will see a higher rise in the price of gold to continue to record the latest highs after being reached in January.

The target for higher gains is at 1950.00 which is the resistance zone once tested in September and January.