GOLD Analysis – Can Gold Reach $1,900 This Week?

<p>&nbsp;As expected in the previous GOLD analysis, the gold price movement managed to break through the concentration level of $1,870.</p><p><br /></p><p>The XAU/USD price chart which measures the value of gold against the US dollar has been closely watched by investors since the beginning of the week.</p><p><br /></p><p>In yesterday's Wednesday trading, the price managed to break through 1870.00 but was flat for a while around that at the beginning of the New York session.</p><p><br /></p><p>This follows the United States (US) producer price index (PPI) data published with a better reading than forecast for September.</p><p><br /></p><p>A slight recovery in the US dollar has limited the bullish pattern in gold prices.</p><p><br /></p><p>However, the US dollar was again trading gloomy after the report of the minutes of the FOMC meeting was published early this morning.</p><p><br /></p><p>Despite the slow tempo, gold prices have shown continued gains in today's (Thursday) trading towards the next target level at 1885.00.</p><p><br /></p><p><br /></p><p>The price movement remains in a bullish trend that is above the Moving Average 50 (MA50) support level on the 1-hour time frame on the XAU/USD chart and if there is no change in the market situation, the price of gold has the potential to continue its climb.</p><p><br /></p><p>However, the challenge awaits in the New York session soon as the market's focus will be on the release of US inflation data (CPI) which is an important indicator for the Federal Reserve (Fed).</p><p><br /></p><p>The expectation for the price increase after passing the 1885.00 level is to reach the important level at 1900.00.</p><p><br /></p><p>Analysts expect that there will be an interesting reaction at this critical zone and give an indication of the direction of further gold price movements.</p><p><br /></p><p>As for the price drop again, the 1870.00 level will be the closest support to be tested before the lower price will reach around 1855.00 again.</p>

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