Gold trading at the end of last week was seen as relatively flat after not continuing the decline to lower levels.
Last Wednesday, the price of gold started to show signs of a plunge to take place after retreating from the highest level in history that was successfully reached at $,2758.
Uncertainty continues to surround the market, but with the warmth observed in the Middle East after Israel retaliated against Iran's attack, it is expected to give an advantage to gold asset trading.
Examining the XAU/USD chart which measures the value of gold against the US dollar, the price is moving between the highest peak range of 2758.00 and the support level of 2710.00.
Until the opening of the Asian session this morning, the price is still moving in the same range slowly around 2730.00.
The price movement around the Moving Average 50 (MA50) line on the 1-hour time frame on the XAU/USD chart is observed for a clearer indication of further direction.
Analysts still see the potential for gold to continue its rise while setting new historical records again in the near future.
The nearest target level placed by the analyst is at the height of 2770.00.
However, if the price gives a clear indication of a plunge, investors should be prepared for the beginning of a gold bearish trend.
The initial drop in price is seen to be heading towards a concentration zone around 2670.00 which the price has successfully penetrated during the rise in mid-October.
See the XAU/USD price chart image below for your technical analysis reference.
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