Gold traded brilliantly over the past week as continued price gains hit 5-month highs.
The attraction of gold as a safe-haven asset remains on the rise due to market concerns that have erupted in the wake of the turbulent conflict in the Middle East.
Looking at the movement on the XAU/USD price chart which measures the value of gold against the US dollar, the price has risen almost touching the 2000.00 level at the close of trading last week.
In the last session, the price made an increase from the level of 1973.00 towards the level of 2000.00, but before touching it the price retreated back down.
Resuming trading at the opening earlier this week, prices started around 1970.00 with slow price movements in the Asian and European sessions.
However, it can be observed that the price that tested the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the XAU/USD chart, failed to penetrate downwards.
On the other hand, the price rose slowly to around 1980.00 with the expectation that last week's bullish trend will continue this week's price.
If the price continues to rise, the 2000.00 resistance becomes a critical level to test and the price will continue to hunt for the latest record high.
A further move past that resistance is likely to lead to the latest target around 2015.00.
However, if there is a change in the trend for the price of gold this week, investors need to prepare for the fall that is about to begin.
The initial drop in price is seen to test the concentration zone at 1950.00 which was successfully breached during last week's rise.
If it declines lower, the price will go to around 1930.00 to 1920.00.
