InstaForex

October 5, 2021

GOLD Analysis - Dizzy Already, Can The Price Of Gold Reach $ 1,800?

 The greenback dollar and 10 -year U.S. bond yields exhibited slight gains in the Asian session and continuing into the European session today (Tuesday) has pushed gold prices to decline.


In addition, the publication of the US NFP employment data report on Friday will be a key key to providing guidance to the Federal Reserve (Fed) in making central bank policy decisions.


Due to these factors, investors are still seen taking precautionary measures on the NFP data that will be published as well as the PMI data of the ISM survey service tonight.


The opening of the New York session tonight is expected to boost gold prices amid the uncertainty of the current movement of the greenback dollar which is still affected by the Evergrande issue.


Judging by the XAU/USD price chart which measures the value of gold against the US dollar, the gold price movement remains stuck in the SBR (support become resistance) zone of 1760.00 to continue rising.


If the USD returns to decline, it is likely that it will invite back expectations for the price of gold to be able to break the SBR 1760.00 zone after 7 days of still failing to break.



A more significant jump will feature the movement of gold price towards the next SBR zone around 1780.00 before testing the resistance zone of 1800.00 to maintain the bullish trend.


If a bearish trend breaks out again, the price is likely to retest the RBS (resistance become support) zone of 1740.00 before being evaluated by investors to determine further movement.


However, a further decline is expected to see the gold price move back to the support zone of 1720.00 which is also the lowest level reached last week.