September 21, 2021

GOLD Analysis - Gold Is ‘Sleeping’, Investors Alert For Any Surprises

 The ‘sideways’ movement of gold prices since last weekend continued into the beginning of this week making investors more vigilant for any surprises especially ahead of the outcome of the FOMC meeting.

On the XAU/USD price chart which measures the value of gold against the US dollar, it can be seen that the price remains moving below the 1765.00 price zone which is a resistance for the gold price to rise higher.

Meanwhile, the price is supported by the level of 1745.00 for the price to hover in the 200 pips zone movement the price continues to today (Tuesday).

Investors started getting early signals for the beginning of the bullish trend of gold after the price managed to pass the Moving Average 50 (MA50) barrier on the 1 hour time frame of the price movement.

Yet resistance at 1765.00 still prevented a higher rise after attempts at this morning’s Asian session still found a dead end.

The slow movement of gold prices continued into the European session, but was supported by the MA50 level which was the price support.

With the failure of the US dollar to maintain its strengthening momentum earlier this week, it is likely that gold has the potential to rise past the 1765.00 resistance out of the sideways zone.

A higher rise will test the level around 1785.00 which was the price support level last week.

The continued rise will return to the 1800.00 focus zone for investors to assess the price reaction in that zone to get an indication of the direction of further movement.

Yet if the decline continues today, the support level of 1745.00 will continue to be tested until that level fails to prevent a lower fall in the value of gold.

The price of gold will continue to record its latest 6 -week low if the decline continues, with the expectation that the next target is to head to the focus support zone of 1700.00.