The market sentiment that recovered at the beginning of the week has had an impact on the gold price falling again since the Asian session trading began this morning.
Reviewing the situation last week, gold excelled in showing an increase in price throughout the week from the first session until the end of the last session.
Driven by risk-off sentiment that increased the attraction of safe-haven assets, the development of the Russia-Ukraine war situation will continue to be monitored and if risks increase again in the market, gold will continue to gain an advantage.
Examining the price movement on the XAU/USD chart that measures the value of gold against the US dollar, the price has shown a continuous increase until reaching a height of around 2710.00 at the end of last week.
Continuing trading in the Asian session this morning, the price has shown a drastic drop from the high of 2720.00 recorded at the opening of the session.
The price drop has reached around 2660.00 before the price movement began to slow down around that point.
However, the price falling below the Moving Average 50 (MA50) resistance line on the 1-hour time frame on the XAU/USD chart is an early warning to investors that further declines are beginning.
If the decline continues, gold prices can be expected to fall towards the 2600.00 level.
After passing this important zone, gold prices risk falling lower than last week's opening price before approaching the support zone at 2530.00.
However, if gold prices manage to recover from this morning's drop, the 2720.00 level needs to be recaptured.
Continuing last week's upward trend, prices will once again target around 2750 to 2770.00, among the zones that were the focus during the journey to break the previous record high.
