InstaForex

August 24, 2021

GOLD Analysis - Weak Momentum of Gold Price Rise Makes Investors Doubtful

 The US dollar, which failed to perform as well as last week, pushed the value of gold higher earlier this week.


Giving a ray to investors, gold has managed to make a rise past the crucial $ 1,800 level yesterday before slowing above that level until the end of the New York session.


The slow movement of gold prices continued until the Asian session this morning and also at the beginning of the European session.


On the XAU/USD price chart which measures the value of gold against the US dollar saw the price move horizontally above the 1800.00 level which is now seen as a price support level.


A higher rise is expected in the next session for the price to test the nearest resistance level around 1830.00 first.


Next, the important zone that will be the target for the continued rise of the price is at 1850.00.



But investors remain wary of the possibility of a recurrence of gold prices if market sentiment changes.


A price that falls back below the 1800.00 zone will give an early signal for the beginning of a bearish price trend.


For bearish situations, important levels such as 1765.00 and 1745.00 will return to be price attractions to test.


A lower decline beyond these levels will push the expected decline in the price of gold until it returns to the 1700.00 support zone.