Gold trading has managed to show a strong performance last week with its value rising to reach the level of $ 1,900.
This follows concerns over the Russia-Ukraine crisis that lasted until the end of the weekend making investors increasingly attractive to gold as a safe-haven asset.
On the XAU/USD price chart which measures the value of gold against the US dollar, it can be seen that the 1900.00 price level is now a resistance zone for the price after the bullish trend maintained until last week has reached that level for a record 8 -month high.
However, the market opening earlier this week saw the gold price decline again from the 1900.00 level and tested the Moving Average 50 (MA50) support level on the 1 -hour time frame for further price movement signals.
Risks in the market eased slightly earlier in the week with a report by US President Joe Biden accepting an offer of a meeting with Russian President Vladimir Putin at the G7 conference this week.
Even so, investors remain vigilant and see risks could increase at any time in the market like last week’s situation.
Technically, the price is seen to be still positive to continue higher if it manages to stay above the 1900.00 level.
The next rise in the price has the potential to reach the latest high around 1925.00.
However, a decline in the price of gold could also occur if the attraction of investment in gold begins to gloom again.
The price may decline again with the RBS (resistance become support) zone at 1870.00 to be tested before continuing the lower decline towards the zone around 1850.00.
Further declines in the price are likely to return to the focus level at 1800.00 if a more obvious bearish trend change has taken place.
