Gold trading was a bit gloomy but remained hovering at the $ 1,900 price level until Tuesday yesterday after last weekend's rise in gold prices reached that high.
Investors remain focused on the development of the Russian-Ukrainian geopolitical crisis with a low probability for a reconciliation to take place in the near future.
Although the President of Ukraine gave a statement that was seen as an attempt to allay concerns, intervention by the United States and Europe was seen as still making the risks continue to increase.
On the XAU/USD price chart which measures the value of gold against the US dollar, the price is still hovering around the 1900.00 level until continuing on European session trading today (Wednesday).
Prices moving below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame give an early signal for a bearish trend change.
However, it is too early to expect a drop in prices due to concerns that still surround the market will continue to create attraction for gold safe-haven assets.
If a decline occurs, the RBS (resistance become support) zone at 1870.00 and 1850.00 will be the focus of the price.
On the other hand if the Russia-Ukraine crisis heats up and the attraction to gold continues to increase, then the price of gold will continue to be driven higher above the 1900.00 level.
The higher rise is expected to head up to the 1950.00 level thus recording the latest high of gold for a period of 13 months.
