August 17, 2021

GOLD Analysis - Rising Pattern Continues Towards The $ 1,800 Focus Zone Again

 Risky market sentiment has driven an increase against safe-haven currencies such as the US dollar and the Yen in the market.

The strengthening of the US dollar will continue if the US retail sales data as well as the minutes of the FOMC meeting show positive results.

However, despite the strengthening of the US dollar, gold trading continued to rise higher as investors' attraction to gold as a safe-haven asset also increased in risk-off market sentiment.

On the XAU/USD price chart which measures the value of gold against the US dollar, last week's bullish pattern was successfully maintained until earlier trading this week.

During yesterday’s New York session, the price rose higher with a bullish signal remaining as the price moved above the Moving Average 50 (MA50) support level on the 1 -hour time frame of the price movement on the XAU/USD chart.

Continuing on Tuesday's trading, the price continued to rise towards the level of 1800.00 to re -test the SBR zone (support become resistance).

If the price manages to rise higher beyond the SBR 1800.00 zone, the expected resistance level of 1830.00 will be retested before the rise continues towards the SBR 1850.00 zone.

However, if the 1800.00 zone becomes a barrier and the price returns to show a plunge, it is likely that investors will see it as a signal of a bearish movement of the gold price.

The previous focus levels around 1765.00 and 1745.00 will again be given attention which are the price attraction zones.

Even further price declines have the potential to hit back up to the 1700.00-1680.00 support zone as at the beginning of last week’s trading.