InstaForex

July 8, 2021

GOLD Analysis - Positive Signs, Gold Prices Soar Again!

 Returning to shine on investors, gold trading was seen soaring in the European session this afternoon as investors were wary of a falling price situation.


However, investors are still waiting for clearer signals to determine the movement of gold price is still in a bullish trend.


The minutes of the FOMC meeting earlier this morning did not seem to have much effect on the movement of gold prices in the market.


On the XAU/USD price chart which measures the value of gold against the US dollar, saw the price start to flatten after reaching a rise around the 1800.00 level.


Investors were a bit upset at the beginning of the Asian session this morning as the bearish below the 1800.00 level also moved below the Moving Average 50 (MA50) support level on the 1 hour time frame which could be an early indication for a bearish trend.


The continued rise is still seen to test the resistance zone at 1820.00 before the next rise will be directed at the SBR (support become resistance) zone of 1850.00.



Yet if the price spike is only temporary and the price makes a re -decline below the 1800.00 level, investors are again ready for a lower gold price fall.


As for the bearish situation, the support level is seen at 1765.00 which was the focus of trading at the end of June before falling lower to the support level of 1745.00.


If the price increase targets the high level of 1850.00, the decline will make the level of 1700.00 as a focus destination.