Analysis of GOLD – Gold 'Rest' for a Moment After Rising Aggressively Last Week

<p>&nbsp;In contrast to the drastic movement that occurred last Friday, the price of gold on Monday's trading yesterday was more flat and weak, not continuing the previous significant jump.</p><p><br /></p><p>Market sentiment is seen to be recovering with the tension in the market easing a bit, but risks are still being monitored in relation to the development of the conflict in the Middle East.</p><p><br /></p><p>If observed, the price of gold has peaked at the close of last week which recorded the biggest daily increase since last March.</p><p><br /></p><p>Price movements have been monitored on the XAU/USD chart which measures the value of gold against the US dollar.</p><p><br /></p><p>After a surge from the 1870.00 zone to touch a high of 1930.00 at the end of last week, the price pulled back a bit and hovered around 1920.00 at the opening of the week yesterday.</p><p><br /></p><p>Although the horizontal pattern is displayed, analysts still see a bullish price trend for gold, which is above the Moving Average 50 (MA50) support level on the 1-hour time frame on the XAU/USD chart.</p><p><br /></p><p>Continuing trading today (Tuesday), the price is still seen testing the 1920.00 level until the European session.</p><p><br /></p><p><br /></p><p>If the increase continues higher, the 1930.00 level will be tested before the price continues to increase towards the 1950.00 level.</p><p><br /></p><p>The last time the price traded around that level was in early September.</p><p><br /></p><p>But, if the price starts to show a plunge below the MA50 support level, it will be a problem for investors.</p><p><br /></p><p>This is due to the price risking a fall back to the concentration level at 1900.00.</p><p><br /></p><p>And if the price continues to drop lower, the level of 1885.00 will be seen as a target to be tested.</p>