GOLD Analysis – Gold Shines Bright, Price Surge To $2,370


The increase in the price of gold at the end of the week re-ignited the excitement of investors after seeing the price flat a few days before.

The situation of the depreciation of the US dollar became a factor that triggered the revival of gloomy trade in gold following the United States (US) unemployment benefit claims data published yesterday with declining figures.

However, analysts warned investors to be prepared to expect another drop in gold prices if the market's focus returns to the previous Federal Reserve (Fed) monetary policy with hawkish tones by FOMC members.

Examining the price movement that occurred on the XAU/USD chart which measures the value of gold against the US dollar, the price has started to leave the previous horizontal zone.

After a slow flat above the 2300.00 zone, the price rally took place yesterday above the 2330.00 level reached earlier in the week.

The price managed to reach a height of 2345.00 at the end of the trading session in New York.

Gold trading continued to shine today (Friday) with the price increase continuing in the Asian session until continuing into the European session.

As of 4pm, the price has reached a level around 2370.00 which is a 2 week high.

If the momentum is successfully maintained, the price is likely to head back to the 2430.00 zone which is the all-time high gold price has reached.

The highest level was reached by the price on April 12 trading.

However, it is not impossible for the price of gold to show a plunge again, especially with the uncertainty of trading in the market at the end of the week.

The price drop if it happens is seen to return to the previous horizontal zone with the target concentration level to test the price at 2300.00 support.

Below that level will be a more clear bearish signal for gold investors to be prepared to face a more severe fall in prices afterwards.