GOLD Analysis – If the Price Continues to Surge, the $1,950 Level Will Be Reached

<p>&nbsp;The continued depreciation of the US dollar into the New York session yesterday has given the gold price an advantage to continue rising higher.</p><p><br /></p><p>Investors are wary of the movement of the US dollar as they await the release of United States (US) inflation data tonight after the NFP jobs report took center stage last week.</p><p><br /></p><p>The impact of the published data will give an overview of the further setting of monetary policy by the Federal Reserve (Fed), affecting the movement of the US dollar and also affecting the fluctuation of the value of gold in the market.</p><p><br /></p><p>Examining the XAU/USD price chart which measures the value of gold against the US dollar saw the price increase continue on Tuesday yesterday reaching the level of 1938.00.</p><p><br /></p><p>Prices retreated slightly before closing trade at the end of the New York session around the 1932.00 level.</p><p><br /></p><p>The signal remains bullish for gold with the price movement still hovering above the Moving Average 50 (MA50) support level on the 1-hour time frame on the XAU/USD chart.</p><p><br /></p><p>Resuming trading in the Asian session this morning (Wednesday), the increase continued again and the price slightly exceeded the height of yesterday reaching the latest level at 1941.00, but at the beginning of the European session the price slightly decreased again.</p><p><br /></p><p><br /></p><p>Price movements will be more intense in the New York session soon as the market watches the numbers on the published US inflation readings.</p><p><br /></p><p>If the price of gold continues to rise, the level of 1950.00 can be reached again after the price dropped from that zone since June 20.</p><p><br /></p><p>The latest high level will be recorded for gold and if it passes 1950.00, the higher target to aim for is around the height of 1980.00.</p><p><br /></p><p>On the other hand, if the price of gold makes a decline, a break below the MA50 support will drag the price down towards the 1920.00 zone.</p><p><br /></p><p>Continuing to drop lower will signal a change in the bearish trend that can shrink the price again until it reaches 1900.00 again.</p>