GOLD Analysis – Not Falling, Price 'Perches' in the $1,920 Zone

<p>&nbsp;After a significant jump last Wednesday, gold price movements started to level off on Thursday's trading yesterday hovering in the important zone of $1,920.</p><p><br /></p><p>The US dollar showed a strengthening in the New York session yesterday supported by the release of the United States (US) unemployment benefit claims data which recorded a satisfactory reading.</p><p><br /></p><p>This re-stabilized the US dollar's losses as the US manufacturing and services PMI data on Wednesday declined for August.</p><p><br /></p><p>However, investors remain wary of the uncertainty that continues to plague the market ahead of the annual Jackson Hole symposium that will begin at the start of the New York session shortly.</p><p><br /></p><p>The strengthening of the US dollar yesterday, although putting pressure on most major currencies, did not have much of an impact on gold.</p><p><br /></p><p>On the XAU/USD price chart which measures the value of gold against the US dollar, it saw a drop initially to the 1912.00 level, but bounced back up to the 1920.00 zone.</p><p><br /></p><p>Not continuing higher, the price resumed trading today (Friday) below the 1920.00 zone again while testing the Moving Average 50 (MA50) support level on the 1-hour time frame on the XAU/USD chart.</p><p><br /></p><p><br /></p><p>If the price shows a surge again and succeeds in breaking through the 1920.00 zone, it will give a positive sign to gold investors to expect a higher price increase to happen.</p><p><br /></p><p>The bullish signal can push the price of gold to make an increase towards the previous concentration zone which is at 1930.00 before moving to the height of 1950.00.</p><p><br /></p><p>However, if the price of gold plunges back below the MA50 level, it could be an early sign of a change in price direction again at the end of this week.</p><p><br /></p><p>The bearish pattern of gold prices in the previous weeks is likely to continue again.</p><p><br /></p><p>The expected price drop is seen to return to the important level of 1900.00 and if the fall continues, the price will retest the support of 1885.00 which has been tested several times before.</p>