Although the value of gold eased slightly at the opening of trading earlier this week yesterday, previously optimistic gold investors breathed a sigh of relief as the price met expectations to remain above the $ 1,900 level again.
Investors' positive expectations will continue as market sentiment remains risky with the heat of the crisis between Russia and Ukraine.
The further development of the geopolitical crisis, the United States (US) and Europe have begun to intervene after Russia declared the two eastern provinces of Ukraine as independent states and ordered the Russian military to launch ‘peacekeeping operations’ in the region.
Thus, as can be seen on the XAU/USD price chart which measures the value of gold against the US dollar, the price continued to rise at the end of the New York session beyond the 1900.00 level before moving horizontally in the Asian and European sessions today.
The horizontal movement of gold price is seen hovering around the high of 1912.00 with the expectation that the rise is likely to continue in the next session.
If the market still assesses the risks in the market and drives increased attraction to gold safe-haven assets, the price will rise even higher.
The price increase will target up to the level of 1950.00 for the record highest price of gold for a period of 13 months.
Yet any possibility can happen in the market and come as a surprise to investors, so investors need to be prepared.
If the situation changes and the price of gold plunges back below the 1900.00 level, there will be a signal of a bearish trend change when the support level of the Moving Average 50 (MA50) on the 1 -hour time frame of the price movement is also broken.
For the expectation of a decline, the RBS (resistance become support) zone that is seen to be the focus is at 1870.00 and 1850.00 for the initial decline.
