GOLD Analysis – Gold Price 'Hangs' Around $2,330, Will There Be a Surprise?


The movement of gold prices was slow and flat on Wednesday's trading yesterday where prices did not continue to decline to lower levels.

When the development in the Middle East subsided for a while, the focus returned to the economic data of the United States (US) which will drive the movement of the US dollar as well as influence the current gold price fluctuations.

The determination of the fate of gold at the end of this week depends on the US economic growth data for the first quarter of 2024 in the New York session tonight, and on Friday tomorrow the PCE price index data will be the focus.

Thus, the horizontal movement of the price on the XAU/USD chart which measures the value of gold against the US dollar is observed.

A significant decline was displayed from the opening of the beginning of the week and on Tuesday the price fell to the 2300.00 level.

The price bounced back and throughout yesterday's Wednesday trading, the price was flat around below the 2330.00 level.

The continued price movement today saw the price hovering above the Moving Average 50 (MA50) support line on the 1-hour time frame on the XAU/USD chart, indicating an early signal for a bullish trend to begin.

If a strong price increase is exhibited, prices will head back to the heights reached in the previous weeks.

The all-time high remains at 2430.00.

On the other hand, analysts warn that a further fall in gold could occur with the market's reaction to the published data.

A drop in price below the 2300.00 level will strengthen confidence in the expectation of a lower decline for gold.

The closest target is at the 2270.00 zone to be tested before a further decline that continues could possibly reach around 2222.00.