GOLD Analysis – Gold does not continue the surge, but hovers in the $1,960 zone

<p>&nbsp;Unlike last Wednesday's price surge, gold trading on Thursday showed a flat movement but remained hovering at the latest high.</p><p><br /></p><p>Gold received a positive boost after the inflation rate in the United States (US) continued to decline closer to the target level in the latest data published this week.</p><p><br /></p><p>Thus, the US dollar which experienced a decline in its trading value gave gold an advantage to shine brighter.</p><p><br /></p><p>It can be observed on the XAU/USD price chart that measures the value of gold against the US dollar, the price has exhibited a strong surge past the 1950.00 concentration zone.</p><p><br /></p><p>On Thursday yesterday, the US dollar was still moving weakly in the market, but the price of gold was seen not to continue to surge higher.</p><p><br /></p><p>The price is hovering above the 1960.00 zone with the highest level recorded so far this week at 1963.00.</p><p><br /></p><p><br /></p><p>The price movement today (Friday) is also slow from the Asian session to the European session, slightly decreasing towards 1950.00 and about to test the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the XAU/USD chart.</p><p><br /></p><p>If the price manages to bounce back from the support level, the price increase will overcome the current high before heading to the next concentration zone at 1980.00.</p><p><br /></p><p>However, if the price moves down and breaks through the MA50 support level and also the 1950.00 zone, this will be a sign that investors need to be careful and prepare for a further fall in gold.</p><p><br /></p><p>The initial decline will approach the 1940.00 zone first before the extended decline will return to 1920.00.</p>