Gold trade showed a positive price climb as it resumed trading in the European session this afternoon after starting the movement at the opening of the Asian session this morning bleakly below the $2,430 level.
In the past week, the price of gold plunged significantly at the beginning of the week when the aggressive selling of assets held by investors can be seen in most financial markets including commodities.
The situation was driven by the uncertainty surrounding the market when concerns over the risk of a recession in the United States (US) economy erupted.
Investors observe the current market situation while evaluating gold price movements on the XAU/USD chart which measures the value of gold against the US dollar.
The current bullish situation in gold prices at the beginning of this week follows a bullish pattern in trading towards the end of last week which recovered from the fall reaching around 2380.00.
The price managed to climb back up before slowing down at the 2430.00 zone at the end of the week's trading session.
The price movement remained above the Moving Average 50 (MA50) support line on the 1-hour time frame on the XAU/USD chart giving a signal for the bullish price trend to continue.
The price increase if it continues this week is seen not far to re-approach the historical record high reached last July around 2483.00.
But the price increase must first pass the resistance of the previous week around 2477.00.
While for the expectation of a price drop again, a drop below the 2430.00 level and passing the MA50 support will be a sign for a change in gold price direction.
Next, the price will display a drop back to last week's support zone around 2380.00 and the price reaction around that will be observed for further movement indicators.
