GOLD Analysis – High Spot Gold Breaks $1,900!

<p>&nbsp;It is no coincidence that the price of gold soared within one day on Friday trading, last week. What happened?</p><p><br /></p><p>Looking at the price movement on the XAU/USD chart which measures the value of gold against the US dollar, surprises were presented last week from the opening to the close.</p><p><br /></p><p>Earlier in the week, prices had opened higher due to the ongoing Middle East conflict.</p><p><br /></p><p>However, the price 'gap' still failed to close until the end of the week when prices continued to rise to the top.</p><p><br /></p><p>Although the US dollar strengthened at the end of the week, it did not manage to put pressure on gold as usual, instead the attraction to the safe-haven asset pushed the price to reach a 3-week high.</p><p><br /></p><p>On Thursday, the price showed a decline from the 1885.00 level to around the 1870.00 zone when the market reacted to the United States (US) inflation data that had been published.</p><p><br /></p><p>However, on Friday, the price of gold did not continue to fall lower, instead it reversed its direction to increase again and the surge continued until the last session of the week.</p><p><br /></p><p>From around 1870.00, the price of gold surged through the 1900.00 level until the latest high was reached at 1930.00.</p><p><br /></p><p><br /></p><p>Following the opening of the trade earlier this week, a bearish pattern was exhibited again towards the level around 1908.00 as of the European session.</p><p><br /></p><p>However, the trend remains bullish where the price is still above the Moving Average 50 (MA50) support line on the 1-hour time frame on the XAU/USD chart.</p><p><br /></p><p>If the bullish movement of last week is maintained again, the price can rise again above the 1920.00 level before recording the latest high level again this week.</p><p><br /></p><p>The higher target for gold is reaching the 1950.00 level after the price last tested that level in early September.</p><p><br /></p><p>Meanwhile, expectations for a decline are seen to react at around the 1900.00 level with the continued decline testing the 1885.00 level.</p><p><br /></p><p>A drop below the MA50 support will be a warning sign to investors for a further fall in gold prices afterwards.</p>