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September 7, 2021

GOLD Analysis - Gold Declines For Second Day After Last Weekend Surge

 Gold trading resumed decline on the second day after failing to continue the surge at the opening of trading earlier in the week.


On the XAU/USD price chart which measures the value of gold against the US dollar saw the close of trading last week the price of gold reached its latest 4 -week high around 1834.00.


Yet on Monday yesterday, more passive price movements showed a re -decline with the daily low reaching 1821.50.


Although the price is seen trying to show an increase in the Asian session trading this morning (Tuesday), but the price is seen continuing the decline again until continuing to trade to the European session towards the focus zone of 1810.00.


The decline below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame on the XAU/USD chart began to signal an early bearish movement for gold trading.


A further decline in the price is likely to test the support level at the previous important zone of 1800.00 for an indication of the direction of the next price movement.



A price that plunges below the 1800.00 zone will push the decline to reach the previous focus levels around 1765.00 and also 1745.00.


Yet if the decline at the beginning of the week is merely a price correction, the price increase will be expected again to pass the 1830.00 resistance zone.


Next, the high level at the resistance zone of 1850.00 will be an attraction for the price on the continued rise.