GOLD Analysis – Gold Tries to Overcome the $2,070 Price Resistance


 Gold trading when resuming this week's trading on Tuesday yesterday was seen not as pleasing to investors as last week.

At the end of last week, the price of gold managed to soar to $2,070, driven by the movement of the US dollar.

Gold also benefited from the weakening of the US dollar after the economic data of the United States (US) was published with a weak reading.

It can be observed the movement on the XAU/USD chart which measures the value of gold against the US dollar, the price has successfully jumped past the resistance level of 2050.00.

On Friday, the price increase has reached the 2070.00 level which is the target level expected by analysts before that.

The price reaction was observed where as soon as the price touched that level, there was a retracement of the price towards the 2050.00 level at the close of the last trading session last week.

On Tuesday yesterday, the price showed an increase again towards the level of 2070.00 but it is seen that it still has not managed to overcome it.

The price movement remains bullish which is above the Moving Average 50 (MA50) support level on the 1-hour time frame on the XAU/USD chart.

The rising pattern is expected to continue, but investors are waiting for the price to break through the 2070.00 level which is a resistance during price making.

The 2080.00 level will be the closest level for the continued rise in gold prices.

However, if the price breaks through 2070.00 instead of a price drop again, that will be an early sign to investors for a bearish movement.

The price will return to test the level of 2050.00 or worse, drop lower below that level before heading to around 2030.00 again.