November 8, 2021

GOLD Analysis - Gold Ignores Positive NFP Data, Records Strong Spike

 On the XAU/USD price chart which measures the value of gold against the USD is seen continuing to show a sharp jump to a 2 -month high around 1821.00 past the previous resistance at 1813.00.

It seems that the 1760.00 support zone once again managed to push the price back to climbing as in mid -October trading until presenting a rise of over 600 pips.

Gold trading is seen as ignoring the publication of US NFP data which is beyond market expectations to continue to climb to the latest highs.

In addition, the sad 10 -year US treasury yield below the 1.50% level as well as the surge in inflation are among the answers to the factors influencing the continued rise in gold prices.

Gold prices also gained strength following a statement by the Federal Reserve (Fed) during a recent FOMC policy meeting regarding a dovish stance on interest rate hikes.

The speech made by the Fed at tonight's New York session and the publication of US inflation data on Wednesday will also be taken into account as aspects that can shake the movement of gold prices.

If gold trading continues to receive momentum to continue to surge, the resistance zone at 1830.00 which has often restrained the surge since July trading is expected to be tested again.

The continued higher rise on the bullish trend is becoming clearer for the price of gold is likely to have the potential to reach back up to the previous focus level at 1850.00.

But if the price returns to show a downward trend, the high probability will probably see the price re -test the RBS zone (resistance become support) at 1800.00.

A significant decline beyond the RBS zone will indicate that the price will give an early indication for the price of gold to head to the next RBS zone of 1780.00 and display a trend change.