The gloomy gold price movement in Thursday’s trading was flatter than last Wednesday’s surprise where investors have seen gold plunge to $ 100 after the rise nearly hit the latest all -time high (ATH).
On the XAU/USD price chart which measures the value of gold against the US dollar, the price has touched the high of 2070.00 last Wednesday, just a little further to surpass the ATH level of 2074.00 reached last August 2020.
Prices then plunged back below the 2000.00 level following the market reaction to the risk mitigation of the previous Russian-Ukrainian war that reduced the attraction to gold with action by the President of Ukraine expressing a desire for a diplomatic solution.
However, market sentiment was re -assessed risky as the fourth round of talks ended without any agreement on the ceasefire and humanitarian corridors.
Despite rebounding, gold prices are seen struggling to break past the 2000.00 level and easing investors ’expectations to expect a higher spike.
Analysts still assess the price will continue to decline due to price movement below the Moving Average 50 (MA50) barrier level in the 1 -hour time frame on the XAU/USD chart remains bearish signal for gold.
The decline is seen to test the RBS zone (resistance become support) at 1970.00 before the lower decline will lead to the 1950.00 focus level.
For further price movement on a clearer bearish trend, investors need to be prepared for a lower fall in the price of gold up to the level around 1970.00 or the 1870.00 zone again.
However, if there are indications for a resurgence of gold prices, the 2000.00 level and the MA50 barrier will be overtaken by the price first.
The continued rise is expected to return to the 2070.00 high again to give investors hope to see the price of gold hit the latest ATH high again this time.
