October 7, 2021

GOLD Analysis - Gold Price Movement Remains To Make Investors Worried

 The published U.S. private sector ADP employment data report exceeded expectations at all indirectly supporting gold prices to decline lower.

Yet investors remain taking that aspect as an encouraging factor in anticipation of the release of NFP employment report data for September on Friday.

However, the 10 -year US treasury yield which was seen making a decline to 1.52% from 1.57% has driven the US dollar to return to trading weak in the New York session yesterday.

Looking at the XAU/USD price chart which measures the value of gold against the USD, the gold price only rebounded at the RBS (resistance become support) zone of 1746.00 before rebounding.

The rebound seems to re -test the SBR (support become resistance) zone of 1760.00 which is the strongest fort despite having been tested repeatedly in the past.

European session trading today (Thursday) saw gold price movement slow down slightly again and tested the 1760.00 level on the way to the opening of the New York session.

A decline beyond that zone is likely to be able to return to the RBS 1740.00 zone and will be referred by investors to see the response of further price movements.

If this time the price manages to break the RBS zone, the price is expected to retest the support zone of 1720.00 to signal to maintain the bearish trend.

However, if the price movement is able to move beyond the SBR 1760.00 zone, the price is likely to move to a higher SBR zone around 1780.00.