GOLD Analysis – Gold Prices ‘Rise’ Over the Weekend

thecekodok


Gold trading began to enter trading in the final sessions of this weekend to end the first week for the opening of December.


However, investors remain cautious as there is still no clear direction for the yellow metal as the price movement range is expanding wider than a few days before.


Of course, important indicators will be awaited in the United States (US) NFP employment report in the New York session tonight which will invite a significant impact on the market.


In addition to influencing the Federal Reserve (Fed)'s view in setting monetary policy, the NFP report will also drive gold price movements with a significant impact expected on the US dollar.


Investors are closely watching the current price movements on the XAU/USD chart which measures the value of gold against the US dollar ahead of the NFP report being published.


In the Asian session this morning (Friday), the price of gold which started around 2630.00 fell lower to reach 2613.00, the lowest level for trading throughout this week.


The price then bounced back up to 2644.00 which was seen testing the Moving Average 50 (MA50) resistance line on the 1-hour chart before slowing down in the European session.


If gold prices surge in response to the release of NFP data, the price increase is likely to reach back to the previous focus zone between 2650.00 and 2670.00.


After breaking through the resistance zone, a higher increase will drive the price towards the target at the height of 2720.00 reached last November.


However, if the price continues to decline downwards, the level reached this morning is likely to be surpassed by the price before heading towards the 2600.00 zone.


A break lower would expect gold prices to reach the latest 3-week low and test the previous support at 2540.00.