GOLD Analysis – Gold Price Climbs Higher, Heading for $1,950?

<p>&nbsp;The price of gold managed to extend its rise to a higher level in yesterday's trading session in New York following the weakening of the US dollar.</p><p><br /></p><p>This can be observed on the XAU/USD chart which measures the value of gold against the US dollar where the latest increase in price has reached a height of 1938.00.</p><p><br /></p><p>But before the surge, the price initially experienced a decline below the 1920.00 zone, making investors nervous.</p><p><br /></p><p>After the United States (US) consumer confidence and JOLTS employment data came out with disappointing figures, the US dollar significantly weakened and pushed gold prices higher.</p><p><br /></p><p>Thus, the price is seen to remain moving in a bullish trend that is above the support level of the Moving Average 50 (MA50) in the 1-hour time frame on the XAU/USD chart.</p><p><br /></p><p>Investors will be watching more important data in the New York session shortly, namely, ADP jobs and also economic growth (GDP) in the US.</p><p><br /></p><p>If the data reading declines, the same movement pattern will be shown by gold.</p><p><br /></p><p><br /></p><p>The price increase if continued will lead to the concentration level of 1950.00 after the level of 1930.00 has been breached.</p><p><br /></p><p>This would mark a 4-week high for gold after suffering a sharp decline since mid-July trading.</p><p><br /></p><p>If the rally fails to hold, the price could likely fall back towards the 1920.00 zone that was breached this week.</p><p><br /></p><p>A lower drop would expect the price to approach the RBS (resistance become support) zone again at 1900.00.</p>