Gold is trading stable in its highest zone which is seen not to suffer a significant fall when the market environment is volatile and fluctuates from week to week.
Market sentiment factors with a focus on the issue of the Iran-Israel war are still driving the yellow metal as a safe-haven asset that is in demand in a risky market environment.
However, the increase in prices is quite limited due to the fact that the US dollar also maintains its strengthening value which is also supported by some positive readings of the United States (US) economic data.
Looking at the current movement of the price on the XAU/USD chart which measures the value of gold against the US dollar, it can be seen that the increase was successfully exhibited in the New York session yesterday.
Initially the price dropped to around 2640.00 before starting to rise modestly before finally closing the end of the session trading at 2655.00.
Although slow, the pattern of rising gold prices continued in the Asian session this morning (Friday) after the price was seen to have been above the support line of the Moving Average 50 (MA50) on the 1-hour time frame on the XAU/USD chart as an early signal of bullish movement.
Continuing the opening of the European session, the price is seen approaching the 2670.00 level which is an important resistance zone that was also tested last Tuesday but failed to break through.
If the price gains continue past that resistance, the previous record high reached at 2685.00 last week will attempt to be challenged.
Next, the gold price record will be broken again if the war situation in the Middle East escalates. Target up to the 2700.00 level?
However, gold prices remain at risk of falling after failing to break through the resistance at 2670.00.
It is possible that the US NFP jobs report that will be published in the New York session tonight can also pressure the price of gold to fall down.
If a significant price drop occurs, the drop can reach up to the 2600.00 zone again.
See the XAU/USD price chart image below for your technical analysis reference.
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