InstaForex

November 2, 2021

GOLD Analysis - Not To Fall More Critically, Gold Climbs Back To Top Of $ 1,800

 Looking at the XAU/USD price chart which measures the value of gold against the USD, it seems that it also recorded a climb at a time when the USD currency was slipping back to weak.


The bullish pattern of gold was also seen starting to gain momentum at the beginning of the European session yesterday (Monday) until it continued to the New York session by closing trading above the 1790.00 level.


The highlighted climb is close to testing the strongest fortification in the resistance zone of 1800.00 and again moving above the Moving Average 50 (MA50) barrier level for a bullish signal.


It seems that investors are more attracted to gold trading following the cautious stance on the US NFP employment data report as well as other important data this week.


Probability factors on the concern of weak economic growth rates are among the things that have given little benefit to gold prices in eyeing the opportunity to rebound.


In addition, the 10 -year US treasury yield which remained moving flat at 1.55% can also be taken into account in assessing the movement of the USD which is currently back slightly declining.



If the gold price movement succeeds in maintaining a more aggressive surge, the resistance zone of 1800.00 still remains the focus zone to be reached before heading to the highs around 1813.00.


Analysts issued an expectation that the gold price may have the potential to reach its latest high peak at 1830.00 if the gold price can give a clear bullish signal.


However, if the USD once gives a surprise to strengthen, the gold price is expected to retest the RBS zone (resistance become support) 1780.00 before plunging lower to the level around 1760.00.