The resumption of risk in market sentiment towards the end of the week has had an impact on the appreciation of gold in the market.
The report on the United States (US) government, which issued a statement that the Russian military is committing war crimes against Ukraine, is seen to further worsen the situation.
This could spark renewed tensions in the wake of several rounds of peace talks during the period beginning Russia’s invasion of Ukraine, still failing to reach an agreement.
Thus, investors saw a reversal pattern yesterday on the XAU/USD chart which measures the value of gold against the US dollar.
The bulls have returned to the resistance level of 1950.00 which was a barrier to gold’s rise last week.
The price surge above the Moving Average 50 (MA50) support level on the 1 -hour time frame on the XAU/USD chart has given a ray of hope to investors as an early signal for gold to move in a bullish trend after this.
If the rally manages to break the resistance of 1950.00 and out of the horizontal zone, the expectation of a higher rise for gold will lead to the target of 2000.00.
And for a higher rise that remains to be continued will return to reach the 2070.00 zone to challenge the previous all -time record in the area.
On the other hand, if the 1950.00 level remains the gold price resistance this week as well, the decline could head back up to the 1900.00 support level.
While a lower decline below that level will also test the level around 1870.00 to record a 5 -week low.
