GOLD Analysis – Is there a sign that gold is about to sink again?
The palpitation of gold investors increased at the end of this week when the market movement was more chaotic, especially when the indication of monetary policy setting by the Federal Reserve (Fed) was still unclear.This has caused the failure of the US dollar currency to show a clear direction with changes in the strength of its value in different sessions.If yesterday's New York session and this morning's Asian session saw the strengthening of the US dollar, the European session this afternoon saw the US dollar shrink again.Therefore, the price of gold is also affected by the movement of the US dollar currency.On the XAU/USD price chart which measures the value of gold against the US dollar yesterday saw the price rise to the 1890.00 level then plunged on the US dollar strengthening in the New York session.The decline has continued into the Asian session this morning reaching the level of 1853.00 where it has crossed the lowest level reached during last week's price plunge around 1860.00However, in the European session this afternoon, the price of gold is seen showing an increase again and testing the level of 1870.00 which is seen as an obstacle for the price.Bearish signals are still being digested by investors with the price movement still below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the XAU/USD chart.If the further decline in price continues, the price could possibly reach the concentration level at 1830.00 and record the latest 5-week low.However, if the price of gold manages to jump back past the 1870.00 level and also break through the MA50 barrier, this situation will be evaluated as an early signal of a change in the upward trend for gold prices.Next, the price that made the increase will go to the 1900.00 level to test the concentration zone.
The palpitation of gold investors increased at the end of this week when the market movement was more chaotic, especially when the indication of monetary policy setting by the Federal Reserve (Fed) was still unclear.
This has caused the failure of the US dollar currency to show a clear direction with changes in the strength of its value in different sessions.
If yesterday's New York session and this morning's Asian session saw the strengthening of the US dollar, the European session this afternoon saw the US dollar shrink again.
Therefore, the price of gold is also affected by the movement of the US dollar currency.
On the XAU/USD price chart which measures the value of gold against the US dollar yesterday saw the price rise to the 1890.00 level then plunged on the US dollar strengthening in the New York session.
The decline has continued into the Asian session this morning reaching the level of 1853.00 where it has crossed the lowest level reached during last week's price plunge around 1860.00
However, in the European session this afternoon, the price of gold is seen showing an increase again and testing the level of 1870.00 which is seen as an obstacle for the price.
Bearish signals are still being digested by investors with the price movement still below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the XAU/USD chart.
If the further decline in price continues, the price could possibly reach the concentration level at 1830.00 and record the latest 5-week low.
However, if the price of gold manages to jump back past the 1870.00 level and also break through the MA50 barrier, this situation will be evaluated as an early signal of a change in the upward trend for gold prices.
Next, the price that made the increase will go to the 1900.00 level to test the concentration zone.
