GOLD Analysis – Gold Had a Chance to 'Test' the $2,000 Level During the NFP

<p>&nbsp;Gold trading also stole the show when price movements were affected by the market's reaction to the United States (US) NFP employment data report published at the end of last week.</p><p><br /></p><p>The gloomy report for the month of October has had a significant weakening effect on the US dollar.</p><p><br /></p><p>This also affects the movement of gold prices which showed an increase after the data was published.</p><p><br /></p><p>Examining the XAU/USD price chart which measures the value of gold against the US dollar, the price is seen to be moving horizontally in the 1980.00 zone last week.</p><p><br /></p><p>On Friday, prices slowed in the Asian and European sessions before showing a surge in the early New York session.</p><p><br /></p><p>The price increase is seen to have retested the 2000.00 level which remains a resistance zone and was also tested in late October trading.</p><p><br /></p><p>Still failing to break through that level, the price retreated back down again and closed trading around the 1992.00 level.</p><p><br /></p><p><br /></p><p>Continuing the trading at the opening of the market earlier this week, the price shows a bearish pattern and has moved below 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>This gives investors a warning sign for the risk that gold prices could fall lower this week.</p><p><br /></p><p>If the price drops below the 1980.00 zone, a lower drop can be expected up to the 1950.00 RBS (resistance becomes support) zone.</p><p><br /></p><p>But if the price manages to jump again, the 2000.00 resistance still remains as a target to be tested and broken.</p><p><br /></p><p>If the price finally manages to break through strongly, the latest 7-month high level will be recorded by gold.</p>