After opening higher in the early opening trade of the week yesterday, gold prices continued to climb higher showing a more positive pattern than the dismal movement of the past week.
Market analysts see gold as having the advantage of being a safe-haven asset in a market that is currently at risk due to concerns over war in the Middle East.
Changes in gold price patterns are translated on the XAU/USD chart which measures the value of gold against the US dollar.
After the NFP last Friday, the price closed the end of the week at around 1830.00, but following the Palestinian-Israeli war that broke out last Saturday, gold prices opened at 1850.00 in the Asian session yesterday (Monday).
Continuing trading in the New York session, the price rose higher breaking through the resistance level at 1855.00 until the end of the session reached around 1863.00.
Today (Tuesday), the price of gold is seen to retreat back to the level of 1855.00 with the possibility of a price correction (correction) for bullish trend movement.
If the price bounces back up, the next focus level is at 1870.00 to test the price.
If it breaks higher, the rise will refocus on previous levels such as 1885.00 and 1900.00.
However, if the price falls below 1855.00, investors will assess whether the price drop crosses the Moving Average 50 (MA50) support level or not on the 1-hour time frame on the XAU/USD chart.
If it happens, it will be a bearish signal for gold with the risk of falling lower to the 1830.00 level or heading up to 1800.00.
