GOLD Analysis – Will Gold Make Investors Smile This Week?

<p>&nbsp;Gold showed signs of a recovery in trading at the close of last week with a surge on display at the start of the New York session.</p><p><br /></p><p>While the US dollar has started to show a re-strengthening, the value of gold continued to show a decline throughout the past week.</p><p><br /></p><p>However, there is a smile on the previously gloomy face of gold investors following the indications shown in the last session of the week.</p><p><br /></p><p>This can be observed on the XAU/USD chart which measures the value of gold against the US dollar with the decline in price over the past week having reached around 1910.00.</p><p><br /></p><p>Price movement remained below the Moving Average 50 (MA50) barrier level on the 1-hour time frame of the chart before a significant surge on Friday.</p><p><br /></p><p>The price hovering around 1920.00 has then surged to the 1937.00 level following the weakening of the US dollar which reacted to the release of gloomy US manufacturing and services PMI data.</p><p><br /></p><p>But the surge was only temporary before the price dropped back to close the trade in the last session to around 1920.00.</p><p><br /></p><p><br /></p><p>Resuming trading at the opening earlier this week, prices moved above the MA50 support level slowly in the Asian session before showing gains in the early European session.</p><p><br /></p><p>If the increase continues beyond the 1940.00 zone that became a resistance for the price at the end of last week, the next price will return to the 1950.00 concentration zone.</p><p><br /></p><p>However, if the price of gold plunges again, the 1920.00 level will be the initial stop that is tested.</p><p><br /></p><p>The next drop lower will pass 1910.00 before heading to the important support zone 1900.00.</p>