GOLD Analysis – Gold Drops After Breaking Record High of $2,430


The most recent high price record was successfully recorded by gold in last Friday's trading reaching up to around $2,430.

For the past few weeks, the bullish pattern of gold prices has remained constant to continue hunting for new record highs.

The increasingly tense Iran-Israeli war situation over the weekend is seen to be an additional factor supporting the attraction of safer gold assets.

However, it made investors cautious when the gold price fell again from the highest level reached in the last trading session last week.

Expectations for the US dollar to strengthen after an increase in inflation figures published last week could risk a fall in gold prices this week.

On the XAU/USD chart which measures the value of gold against the US dollar, the price of gold peaked at 2430.00 at the end of last week, but the price fell back to 2334.00.

Resuming trading at the early opening of the week, prices leveled off around 2360.00 and hovered below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the XAU/USD chart, giving an early warning for a bearish move to take place.

If the price decline is displayed this week, the expectation is the 2300.00 level to be tested as an RBS (resistance become support) zone for the price.

For further decline if it continues, the concentration zone around 2366.00 is expected to invite an attractive price reaction around that area.

Meanwhile, if the price surge is not yet over, the high level reached last week is likely to try to be challenged.

A move higher is not impossible after gold's bullish pattern continued for the previous few weeks.