InstaForex

August 23, 2021

GOLD Analysis - Gloomy Performance, Gold Flat Through The Week

 The movement of gold prices throughout the week flat below the $ 1,800 level disappointing investors ’expectations to see gold prices rise higher above that level after the gains displayed in the previous week.


Previously, gold managed to increase in value due to the attraction of investors to safe-haven assets.


Yet this week, the US dollar rebounded and has restrained gold from continuing to rise.


On the XAU/USD price chart which measures the value of gold against the US dollar saw the price start to flatten below the 1800.00 level this week after a series of price increases from the 1700.00 support zone the previous week.


The outlook for a higher rise in gold price started to gloom after signals mixed with price movements also hovered around the Moving Average 50 (MA50) barrier level on the 1 -hour time frame on the XAU/USD chart.


The strengthening of the US dollar is still expected to continue over the weekend, but investors remain wary of the possibility of profit taking activities that will result in volatile price movements.



If the rally manages to break the SBR (support become resistance) zone of 1800.00, the price target level for the higher rise is at the resistance of 1830.00 and the focus zone of 1850.00.


Yet if the price returns to make a decline again, the nearest focus level that will be the price attraction is at 1765.00 and the level of 1745.00.


For a lower decline below those levels will expect the price of gold to decline again up to the focus support zone of 1700.00-1680.00.