GOLD Analysis - Investors Hope Gold Does Not Give False Hope

 Giving new hope to gold investors when the precious yellow metal returned to shine in Tuesday’s trading yesterday with the expected price increase having taken place.

The increase in the value of gold was driven by the depreciation factor of the US dollar towards the release of US inflation data which was the focus yesterday.

On the XAU/USD price chart which measures the value of gold against the US dollar saw the price continue the surge following the US inflation data published at a weaker -than -expected reading until it passed the resistance zone of 1800.00.

Although the US dollar was seen to have strengthened against most other major points in the market until the end of the New York session, it differed on the flat XAU/USD price chart after reaching the latest high around 1808.00.

The slow price movement continued until the Asian session this morning. A slight decline was seen at the beginning of the European session to the level of 1800.00 which is seen as a price support level.

Analysts expect the price to likely display an increase after touching the 1800.00 level following the significant price spike displayed yesterday.

The upside needs to pass the resistance zone of 1810.00 first for a clearer indication of the bullish price trend for investors.

The next continued rise will head back to the 1830.00 resistance zone which was the focus when tested on the price increase in early September last year.

Yet if gold continues to disappoint investors ’expectations with a re -fall below the 1800.00 zone, investors will assess the price reaction at the support level around 1785.00 which has still supported the price since last week.

A fall below that level will mark the latest low for gold trading in 5 weeks possibly to the previous focus level at 1765.00 or lower at 1745.00.

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