GOLD Analysis – Gold Breaks the $1,800 Level Again!


 Surprises in Japan on Tuesday yesterday as the market focused on Japan's central bank meeting slightly undermined investor confidence.

However, there is sweetness for gold investors when the value of the precious commodity begins to show an increase in value.

The governor of the Bank of Japan (BOJ) who announced an adjustment to the yield curve control (YCC) program for the Japanese government's 10-year bond caused a momentary panic in the global market before it subsided again for the following sessions.

The yen strengthened significantly while the US dollar was still moving sluggishly in the market continuing the flat pattern from the beginning of the week.

Like the safe-haven currency Yen, gold assets also stole the opportunity to rise with yesterday's daily increase of around $35 recorded.

It can be observed the price movement on the XAU/USD chart which measures the value of gold against the US dollar which initially opened at around 1787.00 in the Asian session and then made an increase until it passed the concentration level of 1800.00.

There was a momentary drop in price to the 1800.00 level at the beginning of the New York session yesterday, but the price bounced back and continued to rise higher to end the session's end trade reaching the peak of 1820.00.

The continued price movement in the Asian session this Wednesday morning however slowed down again and slightly decreased around 1815.00.

The move higher is expected to continue for the price towards the resistance zone at 1830.00 to record a recent 6-month high.

However, the increase must first pass the high reached last week at 1824.00.

Meanwhile, for the expectation of a drop in the price of gold, the 1800.00 zone is expected to continue to invite an attractive price reaction after being tested.

A decline that crosses the zone again will again signal a bearish movement for gold to drop lower.

The previous focus levels will be the focus again such as last week's support at 1775.00 and the RBS (resistance become support) zone at 1760.00.