Gold trading continues to be excellent continuing trading today (Wednesday) when the price managed to reach the latest high level again.
Last Friday, the price of gold reached $1,930 at the end of last week as gold as a safe-haven asset gained traction as unrest in the Middle East intensified.
However, the movement of gold prices was flat from the beginning of the week until yesterday before the increase continued today.
The price movement is translated on the XAU/USD chart which measures the value of gold against the US dollar.
After last week's surge to 1930.00, the price then leveled off at the 1920.00 zone earlier this week.
But despite moving horizontally, analysts still see a bullish price signal that is above the Moving Average 50 (MA50) support level on the 1-hour time frame on the XAU/USD chart.
The price rally continued in the Asian session this morning until it reached a recent high of around 1940.00.
The price then flattened around those highs continuing trading into the European session.
A higher rise will be expected to continue the price to further test the important zone which is at 1950.00.
This is the resistance zone that was last tested at the end of August but the price failed to break through.
If the price of gold shows a fall again, the 1920.00 level is seen as support that is retested by the price.
If it breaks through and the price also drops below the MA50 support, this will be a bad sign for the risk of gold prices plunging.
The initial decline is seen to approach the concentration level at 1900.00.
