GOLD Analysis – Gold Holds Above $1,920, Price Will Rise Or Fall?

<p>&nbsp;There were price fluctuations for gold trading at the beginning of the week yesterday, but it was seen to be still in a relatively flat zone.</p><p><br /></p><p>Investors remain cautiously awaiting clearer guidance by watching key data this week in addition to preparing for an ECB forum event on Wednesday that will feature key central bank governors on a panel.</p><p><br /></p><p>Changes in current market sentiment that affect the movement of the US dollar will also affect gold trading.</p><p><br /></p><p>Observe the price movement on the XAU/USD chart which measures the value of gold against the US dollar.</p><p><br /></p><p>If last week a downward pattern was displayed, it was different at the beginning of this week when the price was back flat above the 1920.00 zone again.</p><p><br /></p><p>The price increase in the European session yesterday reached 1933.00 before retreating again in the next session towards the 1920.00 level.</p><p><br /></p><p>However, the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the XAU/USD chart prevents a further fall from happening.</p><p><br /></p><p><br /></p><p>The price was then seen to rise slightly when resuming trading in the Asian session this morning (Tuesday) to around 1930.00.</p><p><br /></p><p>If it manages to bounce higher, the price of gold will try to test the 1940.00 zone before heading to the important 1950.00 zone.</p><p><br /></p><p>On the other hand, if the price of gold plunges again, investors will observe whether the price breaks through the 1920.00 level and also the MA50 support which is a signal for a bearish movement.</p><p><br /></p><p>A lower drop is likely to reach last week's level around 1910.00 again before the price heads towards the 1900.00 concentration level which has the potential to be a support zone.</p>