GOLD Analysis – Gold Disappointed Investors Fall Back To $1,830 Zone
It was a little disappointing for gold investors to see the yellow metal's value decline again after successfully reaching the highest price level in 7 months.Yesterday's New York session saw the US dollar strengthen again after investors reacted to the publication of the private employment data report in the United States (US) with readings of figures that rose high in December exceeding expectations and readings of the previous month.The strengthening of the US dollar at the same time put renewed pressure on gold trading, which began to show its decline in value again yesterday.Looking at the XAU/USD price chart which measures the value of gold against the US dollar, the price has reached its highest level of the week around 1865.00 last Wednesday.However, the price drop was witnessed again Thursday yesterday towards the RBS (resistance become support) zone of 1830.00 which was previously a resistance for the price.The price is seen to bounce back in the RBS zone and hover slowly around it until trading continues today (Friday).Price movements were slow in the Asian and European sessions while investors are likely to be cautiously awaiting the release of the US NFP employment data report shortly in the New York session.Once the price starts to move back below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the XAU/USD chart, investors will assess it as an early signal for a change in the price trend for gold.If the price continues to drop lower below the RBS 1830.00 zone, the price is seen to retrace its steps to the important focus zone at 1800.00.If the zone is also broken, a further drop in price could reach up to around 1780.00 or 1760.00.However, if the price continues to surge from the 1830.00 zone, the price increase will go back to the 1870.00 resistance zone target.Overcoming the level reached last Wednesday will mark gold's latest 7-month high.
It was a little disappointing for gold investors to see the yellow metal's value decline again after successfully reaching the highest price level in 7 months.
Yesterday's New York session saw the US dollar strengthen again after investors reacted to the publication of the private employment data report in the United States (US) with readings of figures that rose high in December exceeding expectations and readings of the previous month.
The strengthening of the US dollar at the same time put renewed pressure on gold trading, which began to show its decline in value again yesterday.
Looking at the XAU/USD price chart which measures the value of gold against the US dollar, the price has reached its highest level of the week around 1865.00 last Wednesday.
However, the price drop was witnessed again Thursday yesterday towards the RBS (resistance become support) zone of 1830.00 which was previously a resistance for the price.
The price is seen to bounce back in the RBS zone and hover slowly around it until trading continues today (Friday).
Price movements were slow in the Asian and European sessions while investors are likely to be cautiously awaiting the release of the US NFP employment data report shortly in the New York session.
Once the price starts to move back below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the XAU/USD chart, investors will assess it as an early signal for a change in the price trend for gold.
If the price continues to drop lower below the RBS 1830.00 zone, the price is seen to retrace its steps to the important focus zone at 1800.00.
If the zone is also broken, a further drop in price could reach up to around 1780.00 or 1760.00.
However, if the price continues to surge from the 1830.00 zone, the price increase will go back to the 1870.00 resistance zone target.
Overcoming the level reached last Wednesday will mark gold's latest 7-month high.
