GOLD Analysis - Is There Still Hope For Gold To Rise Again?

 Gold trading in the New York session yesterday seemed to give hope to investors with the bullish pattern displayed, but not yet convincing enough for an indication of a bullish movement of the price.

The decline in US treasury yields to lows gave room for gold prices to rise following the depreciation of the US dollar.

On the XAU/USD price chart which measures the value of gold against the US dollar, the price made a decline at the opening of the market session earlier in the week up to the level of around 1806.00 continuing the decline on last weekend’s price movement.

Then the price of gold started to rise again in the New York session yesterday, but reached a high level around 1820.00 and did not pass the Moving Average 50 (MA50) barrier level on the 1 hour time frame as the movement signal is still bearish.

Resuming trading on Tuesday, the price moved back slowly again towards the bearish zone yesterday as far as the European session.

The continued decline will lead to the 1800.00 level again and investors will expect the zone to once again support the price increase as in previous weeks.

If the price plunges below the 1800.00 zone, it will give a bad omen for a lower fall in the price of gold in further trading.

The lower decline is seen to return heading up to the previous focus levels around 1765.00 and 1745.00 again.

However, if the price manages to display a more convincing spike, the resistance zone at 1830.00 reached last week will be tested again.

Passing that zone will push the price of gold higher towards the SBR (support become resistance) zone of focus at 1850.00.

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