InstaForex

October 14, 2021

GOLD Analysis - Are There Any Signs That The Price Of Gold Will Soar?

 Investors are increasingly wary of the movement of the US dollar ahead of the release of inflation data in the upcoming New York session and also the minutes of the FOMC meeting early Thursday morning.


Market sentiment is still considered risky, but the US dollar failed to maintain its strength in trading today (Wednesday) due to downward pressure on US 10-year bond yields below the 1.60% level again.


The US dollar, which is seen to be declining again ahead of the upcoming US inflation data, has given gold trading room to record an increase.


On the XAU/USD price chart which measures the value of gold against the US dollar again saw the price of gold register a rise past the resistance zone 1760.00-1765.00 in the European session today.


Yesterday saw a bullish attempt to test the zone, however the price receded and hovered above the Moving Average 50 (MA50) support level on the 1 -hour time frame.


Can prices continue to rise higher to get out of the price horizontal zone since last week?



If the rise in gold price continues, the resistance level of 1780.00 that was successfully reached last week will be tested again.


Exceeding that level will mark the latest gold high level for a period of 4 weeks with the expectation that the 1800.00 zone will be the focus.


On the other hand, if the price rises again below the 1760.00 zone, the price is likely to continue moving in the sideway zone as in the previous week with the price support zone at 1745.00-1740.00.


If the price declines lower below the support zone, the price will move on a bearish trend with a further decline towards the support zone 1720.00.