November 13, 2021

GOLD Analysis - Where's Gold Heading Ahead of Weekend Trading?

 On the XAU/USD price chart which measures the value of gold against the USD, the price is seen continuing to climb to test the highs around 1868.00 before moving slowly at the end of the session.


However, the price movement seems to show a slight decline of almost 100 pips as it enters the opening of the trading session in the Asian session and continues to the European session today (Friday).


If observed, the price also seems to want to test the support level of Moving Average 50 (MA50) on the 1 hour time frame for a signal in maintaining the uptrend pattern.


The influence of the publication of US inflation data that has shocked the market continues to support gold trading to perform excellent performance in this week’s trading.


Concerns about the risk of soaring US inflation as well as its negative implications on global economic growth continue to benefit gold prices.


In addition, the buoyancy of gold trading was also supported by risky market sentiment due to uncertainty over the Evergrande issue and the resurgence of Covid-19 contagion cases in several countries.


But the significant strengthening of the greenback dollar as well as the expectation of profit -taking activity at this point could also put pressure on gold trading from continuing to record a more violent increase.



If the price on the XAU/USD chart again shows a lower decline beyond the MA50, the RBS (resistance become support) zone will likely remain the main zone to test.


The price movement is expected to start giving an early indication to make a trend change if the price continues to break the trendline support to reach the next zone around 1830.00.


If the price movement is able to survive in continuing the uptrend, the resistance zone of 1880.00 is expected to be tested and in turn will create the latest highs again.


A more aggressive rise is likely to see the price reach the highest level ever reached in June trading around 1900.00 which is also used as the next target.