Will record the best monthly trading since May 2021, the price of gold has risen since the beginning of the month until the end of February this year by almost $ 200.
On the XAU/USD price chart which measures the value of gold against the US dollar has seen a bullish trend successfully maintained for 4 consecutive weeks with a significant surge occurring last week following investor reactions to the Russia-Ukraine geopolitical crisis.
The aftermath of Russia’s initiation of aggression and attacks on Ukraine has prompted investors to turn to safe -haven investments in the wake of risky market concerns.
Thus, investors saw the price of gold soar to reach the level of 1974.00 last Thursday, the highest level reached since September 2020.
However, the price did not continue to rise higher and even made a surprise by plunging back to the level around 1880.00.
Investors began to be cautious and changed expectations for the gold price decline again after the initial signal of a bearish trend change as the price remained moving below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame on the XAU/USD chart continuing at the market opening earlier this week.
As of the European session this afternoon (Monday), gold prices showed a decline below the 1900.00 level while the development of the Russian and Ukrainian crises continued to be monitored.
If further price decline occurs, the RBS (resistance become support) zone of 1870.00 is seen as the initial zone to be tested by the price like the decline that occurred last week.
And the continued lower decline will lead to the focus zone of 1850.00 or lower at 1830.00.
However, if gold rebounds high again, passing the MA50 barrier will make gold investors optimistic for the bullish movement of the price.
The 1950.00 level and the 1974.00 high zone will be the focus levels that will be re -tested if the rise in gold prices is successfully continued this week.
Investors remain cautious and expect gold price movements to be more attractive entering the opening session of the New York market.
