Gold ended last week's closing trade on a high note as the price managed to reach the awaited level of $2,000.
This is the highest level gold has reached in 5 months after last May the price touched a higher level of around $2,080.
The Hamas-Israeli war conflict is seen as the main factor supporting the price of gold to soar since early October due to increased attraction for the safe-haven asset.
It was reported that the situation became more tense when Israel acted to destroy communication and electricity facilities in Gaza before starting the ground invasion as it had been warned last week.
If market sentiment remains risky and the attraction to gold assets continues to increase, it is not impossible that gold prices will record new highs again this week.
Examining the XAU/USD price chart which measures the value of gold against the US dollar, the price which was flat around 1980.00 during most of the trading period over the past week has finally managed to break through the 2000.00 level in the last session.
The spike as trading headed into the close reached the 2009.00 level, but at the market's opening earlier this week the price was seen shrinking back below the 2000.00 level.
The support level of the Moving Average 50 (MA50) on the 1-hour time frame on the chart will be tested and the price will try to return to around 1980.00.
If the price plunges lower, investors will be alert to early signals for a change in the bearish trend.
The price drop will return to the RBS zone (resistance becomes support) 1950.00 or continue to a lower level around 1920.00.
But if the price jumps back above the 2000.00 level, the previous bullish movement trend will continue.
The increase in the price of gold will aim to reach the level of focus on trading last May, especially at the peak of 2050.00.
