January 13, 2022

GOLD Analysis - Can Gold Price Break Last Week's Resistance Zone?

 Gold trading is still carving a smile for the yellow metal investors as the value continues to rise towards the end of this week.


Since the beginning of the week, the price of gold has shown a different increase compared to the decline in the price that occurred last week.


The rise in gold prices was driven by the market's reaction to the release of the United States (US) inflation data report yesterday which recorded the highest inflation rate in 40 years.


Investors have seen the US dollar depreciate sharply following the data report while gold prices have risen.


On the XAU/USD price chart which measures the value of gold against the US dollar, the price is assessed to still move in a bullish trend throughout the week as the price movement remains above the Moving Average 50 (MA50) support level on the 1 -hour time frame.


The price increase is still continuing, however the momentum is seen to slow down when it reaches the resistance zone at 1830.00.


The zone had been tested several times in the previous week, but failed to break before the price showed a decline again.



If this bullish pattern of gold continues to continue in the weekend trading, it is likely that investors will see the price reach its latest high after passing the resistance of 1830.00.


For higher gains, investors will focus on the 1850.00 focus zone as well as the resistance zone once tested last November around 1870.00.


However, if the 1830.00 resistance still fails to be broken this time, the price decline should be expected to occur with the price target going back to the 1800.00 zone again.


A lower decline in the price of gold will lead to the support zone at 1785.00 or even lower at the 1760.00 zone.