InstaForex

October 5, 2021

GOLD Analysis - Price Stuck At $ 1,760, Where Does Gold Go?

 The price of gold still seems to be stuck in the SBR (support become resistance) zone of $ 1,760 with a slight decline after producing a head and shoulders pattern in the 1 hour time frame.


But entering the end of the European session today (Monday), the decline was seen only able to test the $ 1,750 level which was the lowest level during last Friday's trading.


If you look at the XAU/USD price chart which measures the value of gold against the US dollar, the gold price movement has shown a signal of a bullish trend change after trading above the Moving Average 50 (MA50) barrier level at the 1 -hour timeframe.


Gold prices are expected to be able to soar more aggressively after the US dollar and US bond yields are seen still showing a decline.


But the publication of the US NFP jobs report this week will be a hot spot for investors to evaluate to determine the movement of gold prices.


Investors are also expected to evaluate the price of gold to re -test the SBR 1760.00 zone and show the ability to anticipate further movement in testing the SBR 1780.00 zone.



The uptrend of the higher gold price movement is likely to be able to reach the resistance zone of 1800.00 to create an 11 -day trading high.


However, if the price on the XAU/USD chart denies the uptrend shown at the moment, the price is expected to test the RBS (resistance become support) zone of 1740.00.


A more significant decline will see the price of gold re -test the support zone around 1720.00 which has become the zone to support the price increase.