GOLD Analysis – Gold Positive Above $2,300 Level, Bounce Expected This Week?


The movement of gold prices last week was seen as less encouraging when investors found it difficult to determine a clear direction for trading the commodity when facing important economic data.

The US dollar which is seen failing to strengthen after the hawkish FOMC meeting has pushed gold prices back up from the lows hit on Wednesday.

Likewise, gold showed a drastic price reaction when the United States (US) NFP jobs data report was published on Friday.

Investors examine gold price movements through the XAU/USD chart which measures the value of gold against the US dollar in the past week.

After a flat movement at the beginning of the week, the price started to show a decline on Tuesday and Wednesday to reach a level around 2282.00.

However, prices surged after the FOMC meeting reaching a high of 2328.00 before heading into the end of the week, prices returned to play around the 2300.00 focus zone.

At the time of the NFP report, the price was seen to jump to 2320.00 before then plunging to around 2277.00.

The price which re-opened around 2300.00 at the start of the week has shown a rise above the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the XAU/USD chart.

The initial signal for a bullish movement for gold will expect the next rise which is likely towards the previous resistance around the 2340.00 level.

For a move higher after a clearer signal, the record high of 2430.00 will certainly be a target to challenge again.

However, if the price retreats back below the 2300.00 zone, it will be a warning to investors for the risk of a lower price decline after this.

The closest concentration zone for the downside is seen around 2770.00 after the price last traded around that area in early April.