GOLD Analysis – Investors Optimistic Gold Heads To $2,030!


Gold investors remained optimistic with the yellow metal's price movement earlier this week following a positive price close at the end of last week.

This is because the decline in the US dollar in the last session of last week has lifted the price of gold further away from the $2,000 level that was successfully penetrated before that.

However, the price movement on Monday yesterday was relatively flat following the United States (US) market holiday in conjunction with President's Day and also slowed down the movement of gold.

On the XAU/USD chart, which measures the value of gold against the US dollar, the price is seen showing an increase to the 2022.00 level, continuing the upward trend at the close of last week.

However, the price retreated back to around the 2013.00 level as the daily low for yesterday's trade.

Still hovering above the Moving Average 50 (MA50) support level on the chart's 1-hour time frame for a bullish signal, the price climbed slowly today up to the 2022.00 level again as of the start of the European session.

If the increase still manages to continue in the following sessions, the 2030.00 zone is seen as a focus as a resistance to be tested by the price.

Next, the target will shift to 2050.00 as the next price focus.

However, if the situation starts to change and see the price drop down, crossing the MA50 support line will trigger an early indication of a bearish trend change.

The price is then expected to make a drop to the 2000.00 level again to test that important level with the price reaction being watched for an indication of the next gold price movement.