Gold prices seemed to soar again yesterday, but still haven’t surpassed the highs reached last week.
This is a market indication that market sentiment is back to risk as the attraction of gold safe-haven assets picks up again.
Monitoring the development of the Russia-Ukraine crisis, Russian attacks on Ukraine continue to escalate even though the two countries are reportedly in the negotiation phase.
On the XAU/USD price chart which measures the value of gold against the US dollar, the price that flattened since the beginning of the week around the 1900.00 level finally showed a return yesterday until the end of the New York session reached the 1950.00 level.
The level has been expected by analysts as an initial resistance for the rise in gold prices before the target that will be the next focus is in the 1974.00 zone for the rise to be continued.
Investors are also optimistic for gold price movement on a bullish trend after the price signal moved above the Moving Average 50 (MA50) support level on the 1 -hour time frame on the XAU/USD chart.
In any case, investors remain vigilant with possible shocks such as a drastic plunge in prices last week after the surge.
It is likely that the latest highs that were expected failed to be reached, instead prices started to decline lower.
To detect the initial bearish pattern, the price will move back below the MA50 level and re -test the 1900.00 level.
The continued lower decline will lead to the RBS (resistance become support) zone at 1870.00 to be tested before the price gives an early signal for a change in the bearish trend.
