The movement of gold prices was seen to be flat at the beginning of the trading week yesterday, a little calmed down after the price surge that continued until the end of last week.
Last Friday saw the price of gold reach a 5-month high as gold continues to gain traction as a safe-haven in the ongoing conflict of war.
If observed on the XAU/USD chart which measures the value of gold against the US dollar, the price has almost touched the 2000.00 level on the rise until the end of last week.
But at the opening of trading early yesterday, the price moved more flat around the 1980.00 zone and started to make investors cautious.
This is due to the price movement that began to be below the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the XAU/USD chart, giving an early signal for a change to a bearish trend for gold.
Going into the European session this evening (Tuesday), the price is still flat below the 1980.00 zone and testing the MA50 barrier.
If the price plunge occurs, the drop is expected to go to the 1960.00-1950.00 zone and the price reaction around that will be observed.
The bearish trend will be more obvious if the price continues to decline past the zone and is expected to go to around 1920.00 again.
However, if the price continues to rise above the 1980.00 zone, the target will be focused on the 2000.00 level to be tested.
It is not impossible for the price of transparent gold to break above 2000.00 this week to continue hunting for the latest high level record.
