GOLD Analysis – $1,760 Zone Fails to Break, Gold Crawls Dismal Over the Weekend


 Trading at the end added to the vigilance of gold investors with market volatility influenced by factors currently in focus.

Difficulty for investors to determine the direction of gold's movement when the US dollar, which drives the asset, is likely to shrink and strengthen.

Pressing the US dollar is when the details of the minutes of the FOMC meeting that were examined showed the impression that the Federal Reserve (Fed) is about to slow down its previously aggressive policy tightening.

Meanwhile, the market sentiment that can support the strengthening of the US dollar is the risk of the spread of Covid-19 in China which is increasingly worrying.

Therefore, the price movement on the XAU/USD chart which measures the value of gold against the US dollar has displayed a horizontal pattern on Thursday yesterday.

The price that had previously made an increase has been slowly flattening below the 1760.00 zone since yesterday's Asian session until the close of the New York session.

In fact, the horizontal pattern continues today (Friday). There was an attempt to continue the rise, but bounced back down after testing the 1760.00 level.

The price dropped to test the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the XAU/USD chart which will be an indicator for further gold price movements.

If the price continues to fall lower breaking through the MA50 support, a decline can be expected to reach up to the 1720.00 zone at the close of trading this week.

Next, the bearish trend will be evaluated with the expectation that the price may continue to decline lower to around the 1700.00 zone.

On the other hand, if the price bounces back at the MA50 level and it is possible that the price can break through the 1760.00 resistance and record the latest high.

The continued price increase is seen to return to the height reached last week at 1785.00.