GOLD Analysis – 'Tame' Gold Price Immediately Below $2,050 Level


 Gold trading briefly halted yesterday rather than continuing its steady rise over the past few weeks.

This is due to the recovery factor of the US dollar on Wednesday trading yesterday which was supported by the release of economic growth data of the United States (US) in the New York session.

The latest data reading for the US Gross Domestic Product (GDP) recorded an increase in growth compared to forecasts and previous figures.

This has limited the continued fall in the value of the US dollar which has slightly recovered from a 3-month low.

But analysts remain cautious on the close of trading this November while some more US economic data will be watched today.

Looking at the movement on the XAU/USD price chart which measures the value of gold against the US dollar, the price has reached a high of 2050.00 at the beginning of the Asian session yesterday.

However, the level became the latest resistance that the price failed to overcome in continued trading in subsequent sessions.

Horizontal price movement below the 2050.00 zone until continued in the Asian and European sessions today (Thursday).

Even so, the price movement is seen to still be in a bullish trend even though the rising pattern has slowed slightly, as the price remains above the Moving Average 50 (MA50) support level in the 1-hour time frame on the XAU/USD chart.

Investors are waiting for a signal on whether the price will be able to break through the 2050.00 resistance after this.

If it happens, the price of gold will record the latest high level again with the target moving at 2070.00.

However, if the 2050.00 level fails to be overcome, instead the price shows a decrease below the MA50 support, this will be a warning sign for the fall of gold.

The price could fall lower past 2030.00 before reaching back to the previous focus zone at 2000.00.