October 12, 2021

GOLD Analysis - Can Gold Reach Last Week's Jump Level?

 Last Friday saw a drastic movement for the price of gold which soared and plunged in the $ 20 range as the market reaction to the US NFP jobs report was published.

On the XAU/USD price chart which measures the value of gold against the US dollar, the price jumped to a high of 1780.00 before falling back below the 1760.00 level at the end of last week.

Continuing trading earlier this week, the gold price movement slowed and flattened below the 1760.00 level and the price several times tested the resistance level of the Moving Average 50 (MA50) on the 1 -hour time frame.

Despite continuing to trade on Tuesday saw the rise past the MA50 barrier in the European session, analysts still saw the difficulty of gold prices continuing to rise higher.

The 1760.00-1765.00 zone is still a tested resistance zone and prices are seen struggling to get past that zone.

If the zone remains restrained from rising prices and prices start making declines again, investors will remain prepared for a lower fall in the value of gold.

The initial decline of the price will test the support level in the RBS zone (resistance become support) 1745.00-1740.00 before the lower decline to the support level of 1720.00.

But if the gold price manages to trigger a rebound, the resistance level of 1780.00 reached last week will be tested again.

Strong price surge momentum could push gold price to its latest high with the 1800.00 zone going to be the main focus.