GOLD Analysis – Gold Tries to Overcome the $2,070 Price Resistance

<p>&nbsp;Gold trading when resuming this week's trading on Tuesday yesterday was seen not as pleasing to investors as last week.</p><p><br /></p><p>At the end of last week, the price of gold managed to soar to $2,070, driven by the movement of the US dollar.</p><p><br /></p><p>Gold also benefited from the weakening of the US dollar after the economic data of the United States (US) was published with a weak reading.</p><p><br /></p><p>It can be observed the movement on the XAU/USD chart which measures the value of gold against the US dollar, the price has successfully jumped past the resistance level of 2050.00.</p><p><br /></p><p>On Friday, the price increase has reached the 2070.00 level which is the target level expected by analysts before that.</p><p><br /></p><p>The price reaction was observed where as soon as the price touched that level, there was a retracement of the price towards the 2050.00 level at the close of the last trading session last week.</p><p><br /></p><p>On Tuesday yesterday, the price showed an increase again towards the level of 2070.00 but it is seen that it still has not managed to overcome it.</p><p><br /></p><p><br /></p><p>The price movement remains bullish which is above the Moving Average 50 (MA50) support level on the 1-hour time frame on the XAU/USD chart.</p><p><br /></p><p>The rising pattern is expected to continue, but investors are waiting for the price to break through the 2070.00 level which is a resistance during price making.</p><p><br /></p><p>The 2080.00 level will be the closest level for the continued rise in gold prices.</p><p><br /></p><p>However, if the price breaks through 2070.00 instead of a price drop again, that will be an early sign to investors for a bearish movement.</p><p><br /></p><p>The price will return to test the level of 2050.00 or worse, drop lower below that level before heading to around 2030.00 again.</p>