Continuing to carve a smile on the faces of gold investors earlier this week, gold prices continued the surge that had erupted since last weekend.
With a risky market situation due to concerns over the Russia-Ukraine crisis, the attraction of gold as a safe-haven asset continues to increase the current value of gold.
On the XAU/USD price chart which measures the value of gold against the US dollar, the price is in line with expectations to continue rising higher reaching its latest 8 -month high until trading resumes today (Tuesday).
The price is seen to continue the surge from the 1851.00 zone to pass the 1870.00 resistance zone which was previously tested in last November's trading.
The Asian session this morning saw the price make another rise until it reached a high of around 1879.00 before a re -decline was exhibited in the European session retesting the 1870.00 level.
The development of the geopolitical crisis between Russia and Ukraine will continue to be monitored and will be a factor driving the movement of gold prices this week.
Investors are optimistic that the price of gold will continue to rise higher with the next target being at the latest high of 1900.00.
Even so, investors remain vigilant and do not rule out the expectation that price changes may recur in the market.
The initial decline is seen to go to the RBS zone (resistance become support) at 1850.00 and the price moving back below the Moving Average 50 (MA50) support level in the 1 hour time frame will give an indication for a return of gold.
The lower decline will lead to previous focus levels again such as the 1830.00 and 1815.00 levels which gave an interesting reaction on last week’s trading.
