GOLD Analysis – Hit $1,760 Price, Really Bright Gold Is Shining This Week


 Maintaining the 'rising and flattening' pattern, gold met the forecast to experience a higher increase in value following the reaction of investors to the publication of the United States (US) inflation data yesterday.

Given the significant depreciation of the US dollar, the US consumer price index data for October showed a declining figure following the continuous monetary policy tightening measures implemented by the Federal Reserve (Fed).

The US dollar's weakening situation has driven higher attraction to gold assets so that its value jumped to an 11-week high.

This can be observed on the price movement on the XAU/USD chart which measures the value of gold against the US dollar.

After the surge exhibited last Tuesday followed by Wednesday's flat move below the 1720.00 zone, the price has since surged past that resistance in yesterday's New York session.

Once again the surge of over 500 pips has reached a high of around 1757.00 at the end of the session, maintaining the bullish movement pattern.

The price still remains above the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the XAU/USD chart with the expectation that the rise will continue.

Continuing the trade through to today's (Friday) European session, the price slightly rose to test the resistance zone at 1760.00 after last being in focus in late August trading.

If the increase continues, the price of gold can reach up to the level of 1800.00 again after passing the concentration zone at 1785.00.

However, if the price plunges again at the end of this week, the 1740.00 zone will be the closest area to be tested first before the price drops to the 1720.00 zone.

Investors will focus on the US consumer confidence sentiment data to examine the movement of the US dollar in the last session which may also affect the current value of gold.