Gold trading for another surprise! But a surprise that pleased gold investors.
Closing last week’s trade brilliantly, the value of gold significantly soared with a $ 40 daily gain recorded on Friday to a level of around $ 1,865 per ounce.
The military crisis between Russia and Ukraine escalated over the weekend with several media reports stating Russia is likely to invade Ukraine as early as this week.
The United States (US) also intervened in this situation where the White House stated that it would act against any aggressive Russian action against Ukraine.
President Joe Biden's Security Adviser Jake Sullivan told CNN that the attack would take place before Feb. 20.
Investor concerns have prompted a shift in investment flows towards safe -haven assets which saw a surge in gold prices in the market at the close of trading last week.
On the XAU/USD price chart which measures the value of gold against the US dollar, the rise in gold prices on Friday in the New York session has dampened initial expectations for a change in the bearish trend.
The price resumed the rise and passed the high level reached on Thursday around 1841.00 before passing the resistance zone of 1852.00.
The highest price gain was reached around 1865.00 at the end of the last session last week before the price started to decline at the early opening of trading this week.
The 1852.00 zone is now a support zone for prices that are expected to resume higher gains with investor concerns in risk-off market sentiment will continue to benefit gold.
The price increase is expected to test the 1870.00 high which was previously the price focus zone in November 2021 trading.
On the other hand if the gold price plummets again, passing the 1830.00 level will start signaling for a change in the bearish trend again.
Next the price zones seen to be the focus of the continued decline are around 1822.00 and 1855.00 before heading up to 1800.00.
