GOLD Analysis – Investors Smile As Gold Prices Rise Towards $2,000


 Gold trading managed to maintain its excellent performance on Thursday yesterday with the pattern of rising prices continuing to higher levels.

The current market situation does not show any significant changes after the important economic data has been digested by investors.

For now, gold investors remain optimistic for the price to target the $2,000 level as in early November trading.

Judging by the price movement on the XAU/USD chart which measures the value of gold against the US dollar, the bullish pattern that started at the beginning of the week continued into yesterday's New York session.

The price remains above the Moving Average 50 (MA50) support line on the 1-hour time frame, signaling a bullish move for the yellow metal.

Positive for gold, the price has successfully broken through the 1980.00 level in the New York session and finally reached the height of 1985.00.

Prices remained hovering slowly around that until trading continued in the Asian and European sessions today (Friday).

With the pattern displayed, the price's tendency is to continue rising higher to reach the 2000.00 target.

If finally the price manages to break through the 2000.00 zone which is an important resistance for the price, the latest high record will be broken to reach the highest level since May trading.

However, if prices start to change direction, a downward movement at the end of the week is not impossible to witness and investors are likely to be prepared for such a situation.

A pullback below the 1980.00 level will attempt for price to break through the MA50 support before signaling a trend change.

The concentration zone at 1950.00 will then be the target to be tested and the price reaction will tell where the price is headed next week.