GOLD Analysis – Prices Soar! Gold Signals 'Bullish' Towards $2,000 Again

<p>&nbsp;Gold trading this week with a significant jump in price was exhibited in the New York session yesterday after the US dollar weakened significantly in reaction to the publication of the United States (US) inflation data.</p><p><br /></p><p>The US consumer price index (CPI) posted an annual reading of 3.2% for October, down from the 3.7% level recorded in the previous month.</p><p><br /></p><p>Gold price movements are observed through the XAU/USD chart which measures the value of gold against the US dollar.</p><p><br /></p><p>Starting trading at the beginning of the week, the price was pushed down to touch the 1920.00 level before hovering slowly in the 1950.00 zone.</p><p><br /></p><p>The price that started to move above the Moving Average 50 (MA50) support line on the 1-hour time frame on the chart gave an early signal for a trend change before the market then entered the New York session yesterday.</p><p><br /></p><p>After the CPI data was published, prices continued to soar through the 1950.00 level until reaching a height of around 1970.00.</p><p><br /></p><p>The price retreated back down to close the New York session trading around the 1962.00 level.</p><p><br /></p><p><br /></p><p>Slow price movements resumed trading in the Asian session this morning (Wednesday), but the pattern of price increases was shown until prices retested the heights reached yesterday.</p><p><br /></p><p>Expectations for an extended price movement higher, the price will test the 1980.00 zone before the target will return to the critical 2000.00 zone.</p><p><br /></p><p>If observed previously, the price tested the resistance zone at the end of October and in early November, but failed to break higher.</p><p><br /></p><p>Meanwhile, for the expectation of a further decline in the price of gold, the 1950.00 zone is seen to give an interesting reaction before the direction of further movement will be identified.</p><p><br /></p><p>If the price breaks down and also crosses the MA50 support line again, this will be a bearish signal and the price is likely to resume the downtrend of last week.</p>