In contrast to the bullish pattern displayed earlier in the week, gold trading was flat for several days until Thursday.
The positive reaction to gold at the opening of this week as investors assessed the risky market sentiment and also weakened the US dollar currency trading.
The war conflict between Russia and Ukraine intensified again when Ukraine launched an attack on a Russian military base on Sunday, as both countries' delegations were heading to Istanbul for peace talks.
The talks continued, but did not seem to end well when the Russian delegation did not agree to the pro-Ukrainian negotiation proposal.
Examining the movement of the XAU/USD chart which measures the value of gold against the US dollar, the price made an increase at the beginning of the week reaching the level of 3390.00.
The price then leveled off and moved slowly below that level for several days.
The price movement of gold in the Asian session this morning (Thursday) hovered between 3380.00-3360.00, moving above the Moving Average 50 (MA50) support line, showing a bullish signal.
A higher increase is expected to surpass the 3400.00 level after the price moved below that level for 4 consecutive weeks.
If it succeeds in surpassing the 3400.00 level, the target is to return to 3500.00, which is the record high gold reached in April.
However, if the price of gold plunges, the 3300.00 zone will be approached again to be tested.
Clearer indications supporting the fall in gold could push the decline to previous concentration levels such as around 3220.00 to 3150.00.
