InstaForex

August 29, 2021

GOLD Analysis - $ 1,800 Magnetic Zone Pulls Gold Price Back From Plunging

 Expected to plummet, instead gold trading bounced back on Thursday trading yesterday rising to the $ 1,800 price zone.


On the XAU/USD price chart which measures the value of gold against the US dollar saw the price did not continue to decline after rebounding from the 1780.00 level.


Continuing to heal the wounds of gold investors, the value of the precious commodity continued to rise today (Friday) past the resistance level of 1800.00 in the Asian session.


However, continuing at the beginning of the European session, the price began to decline slightly below the 1800.00 level again which is an important zone for investors to assess the price reaction for further movement direction signals.


A rise above the Moving Average 50 (MA50) barrier on the 1 -hour time frame on the XAU/USD chart could be an early sign of a bullish movement of the gold price again.


Yet the bulls need to break this week’s resistance level at 1809.00 before giving a clearer bullish signal.



For a continued bullish situation, the resistance level at 1830.00 will be the focus zone that the price will test.


The next rise beyond that zone is expected to go to the important zone of 1850.00 which was the price focus in previous trades.


If gold trades lose again over the weekend, the price is likely to decline to this week’s lows towards the support level of 1765.00.


The lower decline will then test the 1745.00 focus level before a continued decline is expected to head back to the 1700.00 support zone.