At the end of the last trading sessions last Friday, gold prices hovered in a small range between $2,670 and $2,650 as the end of November.
The flat price movement since Tuesday is seen as showing price resilience after experiencing a significant drop at the beginning of the week.
Concerns over the ongoing war situation in the Middle East are among the supporting factors for gold as a safe-haven asset.
In addition, the US dollar also moved gloomy for the last week of November, thus limiting a deeper fall in the value of gold.
Investors carefully examined the movement on the XAU/USD chart that measures the value of gold against the US dollar.
The gloomy opening for early December for gold saw a price decline occur as soon as the Asian session began this morning (Monday).
The price hovered again below the Moving Average 50 (MA50) resistance line on the 1-hour time frame on the chart, giving an early warning of a bearish movement in gold.
The price risk is to continue the decline to the nearest support zone around 2600.00 which was also targeted by the price in the plunge at the beginning of last week.
If the price breaks through this important zone, it will be a warning to investors to prepare for a more severe fall in gold with the nearest target being to test the 2540.00 zone.
On the other hand, if there is a rebound in price that successfully passes the level around 2670.00, the price focus will be to regain the height of 2720.00 last week before the plunge situation occurs.
And if the price finally manages to climb higher past this level, the latest 5-week high will be recorded for the price to target the record high of 2790.00 reached at the end of last October.
