GOLD Analysis – Eh, Gold Rebounds Above $1,640!


 Resuming trading on Tuesday, gold prices showed a rebound to start trading at the opening of November.

This has shown the situation of a change in the price direction for gold after the strengthening pressure by the US dollar on Monday yesterday pressured the price of gold until the New York session.

The value of gold is expected to be volatile in the week ahead of the focus event of the FOMC meeting and also the United States (US) NFP employment data report which will drive the movement of the US dollar in the market.

On the XAU/USD price chart which measures the value of gold against the US dollar has seen the downward trend continue on Monday yesterday to close the October trading.

The decline was seen as a continuation of the momentum at the end of last week as investors got early signals for gold to fall again.

The decline in the price in the New York session yesterday has reached around 1632.00 before the price bounced back to make an increase past the concentration level of 1640.00.

The price increase continued until entering the opening of the European session until it crossed the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the XAU/USD chart.

As of 4.30pm local time, the price has managed to climb up to around the height of 1650.00.

If the price manages to continue moving higher, resistance at the 1660.00 zone will be tested before the price attempts to overcome the highs reached last week.

Next, the level of 1680.00 is seen to be the next target in the rising pattern that is still continuing in price.

Meanwhile, if the price of gold plunges back below the 1640.00 level, analysts still expect the support zone around 1620.00 to be tested again after being the focus of trading 2 weeks ago.

A further drop lower is expected to reach around 1600.00.