GOLD Analysis – Gold Falls When CPI, But Rises Again!

<p>&nbsp;The United States (US) inflation data published in the New York session yesterday also gave impetus to gold trading in the market.</p><p><br /></p><p>This is due to the significant strengthening of the US dollar after the data was published which has pushed the price of gold down again.</p><p><br /></p><p>Previously, gold prices have maintained a bullish movement pattern after opening higher at the beginning of last week.</p><p><br /></p><p>This can be seen in the movement on the XAU/USD chart which measures the value of gold against the US dollar.</p><p><br /></p><p>The continued rise had initially reached the focal level of 1885.00 yesterday, but the pattern changed as US inflation data came into focus in the New York session.</p><p><br /></p><p>The price of gold plunged to around the 1870.00 zone, which was one of the price focuses before.</p><p><br /></p><p>An attractive price reaction occurred when a surge was again exhibited following the opening of the Asian session this morning (Friday) and the increase continued towards the 1885.00 level in the European session.</p><p><br /></p><p><br /></p><p>The resistance of 1885.00 will be tested and will try to be broken before the price resumes the previous bullish trend movement.</p><p><br /></p><p>The target is still directed to the level of 1900.00 for the price to record the height level of the latest week.</p><p><br /></p><p>However, if the price is pushed back down again, again the 1870.00 zone will be tested and the reaction will be observed for the indication of the next movement of the price.</p><p><br /></p><p>A dip lower would expect the price to retrace the 1855.00 level as tested last Tuesday.</p>