December 28, 2021

GOLD Analysis - $ 1,814 Wall Breaks! Will Gold Stay Climbing?

 The decline in US 10 -year treasury yields, which fell to below the 1.50% level, can be considered as one of the factors in supporting the gold price surge.

Furthermore, expert reports on Omicron not being so serious at all have already influenced risk-on market sentiment and continue to result in a gloomy greenback dollar at the close of 2021.

But the Federal Reserve (Fed) wants to speed up policy tightening measures that will probably put a strain on gold prices instead of continuing to excel in rising.

The price movement on the XAU/USD chart has seen the maintenance of the uptrend as the price continued to climb in yesterday's trading session (Monday) to return to the high of 1814.00.

The attempt was seen to be successful during the opening of the New York session on Monday, ie the price only tested the Moving Average 50 (MA50) level as well as trendline support to remain climbing until the end of the session.

And finally the price movement has managed to break the highest wall in the European session today (Tuesday) to create the latest record height in the moments leading up to the New York session later.

In line with these factors, investors may conclude that the price seems to be forming an ascending triangle pattern that is able to support the price reaching the 1830.00 zone.

This can also indirectly be said as a clear initial picture for the possibility that the price will be able to climb up to the 1850.00 zone and thus will continue the uptrend pattern.

For example, the pattern of price movement does not become, then the investor may take steps in making the probability for the price to decline again and reach the focus zone of 1800.00.

Analysts also think that the RBS (resistance become support) zone of 1780.00 is expected to be emphasized to be tested again if the price continues to grieve to remain bearish.