GOLD Analysis - Gold Has Started to Rise, This is a Positive Sign!


 Golden rays lit up the trading of the precious commodity investors at the end of last week with the price surge successfully displayed again.

The movement of gold prices has been influenced by changes in the US dollar currency which reacts to important published data.

On Thursday, the price of gold fell under the pressure of the United States (US) consumer inflation reading which was higher than forecast, but the producer inflation data on Friday declined causing the US dollar to weaken as well as lifting up gold to strengthen.

It can be observed on the XAU/USD chart that measures the value of gold against the US dollar, the price was pressed before reaching the level around 2013.00 on Thursday.

However, the price on Friday changed its pattern when it showed a significant surge again until it broke through the 2050.00 level.

Being the highest level for the past week, the price of gold managed to reach around 2060.00 before closing the last trading session below 2050.00 again.

The price movement pattern has turned bullish with the price also being above the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the chart, projecting an upward price trend for this week.

Continuing trading in the Asian session this morning (Monday), the price shows an increase to hover slowly above the 2050.00 zone but has not yet overcome the height of last weekend.

The price of gold has the potential to increase again after this with the target to head towards the concentration zone around 2070.00 to 2080.00.

Next, the next gold target is to overcome the height reached at the end of last December.

However, if the situation changes again, don't be surprised if the price of gold shows a plunge again after this.

Plunged from the 2050.00 level until the price returned to the lowest level reached in last week's trade.

Further, after the exchange of bearish trend, the price of gold will go to the target at the concentration level of 2000.00.