In contrast to the drastic movement that occurred last Friday, the price of gold on Monday's trading yesterday was more flat and weak, not continuing the previous significant jump.
Market sentiment is seen to be recovering with the tension in the market easing a bit, but risks are still being monitored in relation to the development of the conflict in the Middle East.
If observed, the price of gold has peaked at the close of last week which recorded the biggest daily increase since last March.
Price movements have been monitored on the XAU/USD chart which measures the value of gold against the US dollar.
After a surge from the 1870.00 zone to touch a high of 1930.00 at the end of last week, the price pulled back a bit and hovered around 1920.00 at the opening of the week yesterday.
Although the horizontal pattern is displayed, analysts still see a bullish price trend for gold, which is above the Moving Average 50 (MA50) support level on the 1-hour time frame on the XAU/USD chart.
Continuing trading today (Tuesday), the price is still seen testing the 1920.00 level until the European session.
If the increase continues higher, the 1930.00 level will be tested before the price continues to increase towards the 1950.00 level.
The last time the price traded around that level was in early September.
But, if the price starts to show a plunge below the MA50 support level, it will be a problem for investors.
This is due to the price risking a fall back to the concentration level at 1900.00.
And if the price continues to drop lower, the level of 1885.00 will be seen as a target to be tested.
