InstaForex

July 23, 2021

GOLD Analysis - Once Again Gold Failed To Fall Below The $ 1,800 Level

 Still seeing the same situation repeated, gold trading remained safe from falling lower below the $ 1,800 price level after testing the zone again yesterday.


Gold investors breathed a sigh of relief when the price made a rebound above the $ 1,800 level but not enough to give a strong signal for a bullish trend.


On the XAU/USD price chart which measures the value of gold against the US dollar, the price rebounded above the Moving Average 50 (MA50) support level in the 1 -hour time frame supported by the US dollar depreciation factor after the published US unemployment claims data rose yesterday.


However, market sentiment, which was assessed slightly recovered from the beginning of the week, also reduced the attractiveness of gold as a safe-haven asset for investors.


The Asian session on Friday saw the price decline slightly almost touching the 1800.00 level again but rebounded at the beginning of the European session trading after testing the MA50 support level.


The rally is expected to retest the 1824.00 high reached last Tuesday before a higher rally tests last week's resistance level around 1834.00.



Exceeding these resistance levels will push the price up to the level of 1850.00 in the SBR zone (support become resistance) as the main target of the gold price.


However, if the price plummets below the 1800.00 level, investors need to be prepared for the fall in the price of gold again until it reaches the previous focus level as at 1765.00 and also 1745.00.


The lower focus level will be directed at the 1700.00 price zone again after the price jumped from that level since trading at the end of March.