GOLD Analysis – Gold Will Head to $1,950 Or Rebound?

<p>&nbsp;Gold trading will be influenced by the publication of important economic data this week with the most awaited focal event being the FOMC meeting.</p><p><br /></p><p>With the expectation that interest rate hikes will be implemented by the Federal Reserve (Fed), the US dollar has the potential to strengthen ahead of the meeting.</p><p><br /></p><p>This situation was already shown at the end of last week when the US dollar, which had experienced a decline before, showed a recovery again.</p><p><br /></p><p>This also affects the movement of gold as shown on the XAU/USD price chart which measures the value of gold against the US dollar.</p><p><br /></p><p>Last Thursday, the level of 1987.00 reached became the highest level for a period of 9 weeks before the price started to go down until the end of the week.</p><p><br /></p><p>Moving below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the XAU/USD chart, the price of gold has touched around 1957.00 in the closing trade of the last session of the week.</p><p><br /></p><p>Continuing the opening trade earlier this week, the price is hovering slowly above the 1957.00 level but is still below the MA50 barrier.</p><p><br /></p><p><br /></p><p>With the expectation that the US dollar will continue to strengthen, the price of gold will drop lower towards the previous concentration zone at 1950.00.</p><p><br /></p><p>A lower drop that penetrates the zone will also test the RBS (resistance become support) zone at 1934.00.</p><p><br /></p><p>However, if the price of gold rises again at the beginning of this week, pay attention to the level of the MA50 barrier that is passed, which will be an indication for a bullish movement again for gold.</p><p><br /></p><p>The highs reached last week are likely to be re-targeted before the price continues its climb higher towards the 2000.00 focus level.</p>