GOLD Analysis – Gold Price Recovers To $1,900 Level

<p>&nbsp;An initial surprise for the market but a positive news for gold investors when the current movement in the price of the yellow metal is more attractive to resume trading today (Tuesday).</p><p><br /></p><p>Following the decline of the US dollar at the beginning of the week due to investor caution ahead of the Jackson Hole symposium event, gold took the opportunity to show recovery.</p><p><br /></p><p>Examining the XAU/USD chart which measures the value of gold against the US dollar, the price is seen to have successfully held above the 1885.00 support level tested since the end of last week.</p><p><br /></p><p>On Monday yesterday, the price remained above that level and there was an attempt to increase the price in the New York session to reach the 1900.00 level but was unsuccessful.</p><p><br /></p><p>Continuing today's trading, the price leveled off slowly in the Asian session around the 1895.00 level.</p><p><br /></p><p>Investors are ready after a bullish price signal that has been above the Moving Average 50 (MA50) support level on the 1-hour time frame on the XAU/USD chart.</p><p><br /></p><p>The upswing was seen in the early trading of the European session testing the 1900.00 level for a breakout to higher levels.</p><p><br /></p><p><br /></p><p>With the expectation that the price of gold can continue to rise higher, the 1920.00 level will be the target to be reached again, which is seen to be a price resistance again.</p><p><br /></p><p>However, if the 1900.00 zone remains preventing the price from making gains, watch for a retracement below the MA50 support level.</p><p><br /></p><p>If it happens, the price will go down to retest the important support level of 1885.00 and if it breaks through, it will be a bearish signal for the price of gold.</p><p><br /></p><p>A lower decline could be targeted towards around 1970.00 to record the latest low since March.</p>