In contrast to the concerns that arose at the beginning of the week, market sentiment is recovering and pushing gold prices lower.
This situation was driven by President Donald Trump's announcement that both Iran and Israel have agreed to a ceasefire and negotiations to end the war.
Gold as a safe-haven asset is losing its appeal as market sentiment is risk-on, but investors remain wary of the risk of war that could flare up again at any time.
Investors are closely watching the price movement on the XAU/USD chart, which measures the value of gold against the US dollar as the war conflict continues to be the main driver of the market.
At the beginning of the week yesterday, the price was trading slightly higher from last week's close, around the 3390.00 level.
However, the price decline was displayed again up to the 3320.00 level as trading continued into the European session today.
The price movement, which has returned below the Moving Average 50 (MA50) resistance line on the 1-hour time frame on the XAU/USD chart, now suggests a bearish trend for gold.
The price is expected to continue its decline approaching the important zone at 3300.00 after the zone was last tested two weeks ago.
Continuing the decline lower, the levels of 3220.00 and 3150.00 are seen as the next targets for the price to be broken.
On the other hand, if the market situation changes, the gold price still has the potential to rise again like the market opening at the beginning of the week.
The level of 3400.00 is still the target for the price to be tested before returning to the peak of the record high of gold at 3500.00.
