GOLD Analysis – Gold Tries to Hold at the $1,920 Price Level

<p>&nbsp;Gold trading showed interesting movements last week as investors reacted to the results of central bank meetings that took place over the past week.</p><p><br /></p><p>In particular, the FOMC meeting, which has had a major impact on the US dollar currency, has also influenced the current gold price movement in the market.</p><p><br /></p><p>This can be observed on the XAU/USD chart which measures the value of gold against the US dollar.</p><p><br /></p><p>From the beginning of last week to the middle, gold prices initially showed a positive bullish pattern continuing the movement from the previous week.</p><p><br /></p><p>However, as the surge on Wednesday almost reached the 1950.00 concentration zone, the price then plunged following the hawkish tone by the Federal Reserve (Fed) after the FOMC meeting had strengthened the value of the US dollar.</p><p><br /></p><p>The price movement pattern turns into a bearish trend when the price also starts to fall below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the XAU/USD chart.</p><p><br /></p><p>The price of gold dropped to around 1914.00 on Thursday, but returned to trade higher above 1920.00 again at the end of the week.</p><p><br /></p><p>Trading at the end of last week's sessions saw attempts to increase the price remained blocked by the MA50 until it continued at the opening of the market earlier this week.</p><p><br /></p><p><br /></p><p>As of this evening's European session, prices are hovering slowly above 1920.00 and investors are gearing up for the opening of the New York session which is likely to be more lively.</p><p><br /></p><p>If the price breaks below the 1920.00 zone, this will be an early indication for the price to continue its decline this week.</p><p><br /></p><p>If it surpasses the level of 1914.00 that was reached last week, the price of gold is at risk of falling towards the concentration level at 1900.00 again.</p><p><br /></p><p>But on the other hand if the price manages to jump up, the 1930.00 level will be an initial stopover before the price continues to climb higher to the level reached last week.</p><p><br /></p><p>The 1950.00 zone remains a target to be tested after the price recovers and if broken, the price of gold will record the latest high above the trade in August.</p>