To the delight of investors, the price of gold made a surprise in early trading this week by successfully reaching the $2,000 level.
Following the crisis, this is the third time gold has reached $2,000 after doing so in 2020 (Covid-19) and 2022 (Russia-Ukraine war).
However, as expected by analysts, the price of gold did not last long above the $2,000 level before returning to trade and shrinking slightly in the New York session yesterday.
Gold is seen as an attraction as a safe-haven asset when the global crisis triggers anxiety in the market.
Investors are currently monitoring the development of the crisis and are cautious ahead of the FOMC meeting that will take place this week.
Continuing trading on Tuesday was seen hovering around 1970.00 and testing the Moving Average 50 (MA50) support level on the 1-hour time frame on the XAU/USD chart.
If the price manages to bounce back up again, the 2000.00 level will be reached again which is now seen as the latest resistance zone for gold.
If it manages to pass to a higher level, the latest 1-year high level will be recorded with a target towards the peak of 2070.00 which was reached last February 2022 level.
However, if the price of gold fails to show excellent performance, the price is likely to fall further away from the height of 2000.00 reached yesterday.
The 1950.00 zone is the initial focus to be tested before the price that continues to decline lower will head back around 1900.00.
