GOLD Analysis – Gold Prices Soar After NFP, But Fall Again Early This Week

<p>&nbsp;The price of gold rose again in trading last Friday following the weakening of the US dollar when the United States (US) NFP employment data report was published.</p><p><br /></p><p>US job growth in July recorded a dismal figure, falling short of forecasts and the previous month's reading was also revised down.</p><p><br /></p><p>Being the focus for the Federal Reserve (Fed) for setting monetary policy, the focus will shift to the release of US inflation data this week.</p><p><br /></p><p>On the XAU/USD price chart which measures the value of gold against the US dollar, it can be seen that the price initially plunged before rising when the report was published.</p><p><br /></p><p>The price which slowly leveled around 1932.00 then dropped to first reach 1926.00 for a 3-week record low before then surging.</p><p><br /></p><p>Due to the weakening of the US dollar, the price of gold has reached the level of 1947.00 after the surge also crossed the Moving Average 50 (MA50) barrier on the 1-hour time frame on the XAU/USD chart for a bullish signal.</p><p><br /></p><p><br /></p><p>However, continuing at the opening of the second week of August, the price showed an initial decline testing the MA50 support around 1937.00.</p><p><br /></p><p>If the price manages to bounce back to resume the surge at the end of last week, the gold price increase will aim to reach 1950.00 again as a target level.</p><p><br /></p><p>If it manages to break through higher, the price will go back to the previous concentration levels such as around 1970.00 or the resistance zone at 1980.00.</p><p><br /></p><p>On the other hand, if the price of gold plunges more severely this week, investors will be watching to see if the price surpasses last week's lows or not.</p><p><br /></p><p>The lower level is around 1920.00 to test if the decline continues and the price will record a recent 4-week low before the target moves to 1900.00.</p>