Opening trading earlier this week, gold prices continued to be driven to new 9-month highs driven by the continued weakening of the US dollar.
Since last November 2022, the price of gold has shown a pattern of increasing its value when the market began to see changes in the monetary policy of the Federal Reserve (Fed) from their aggressive policy tightening before that.
With the release of the latest United States (US) inflation data published last week showing a 6 month consecutive decline, the US dollar continued to trade weakly into the week and also gave room for gold to continue to rise.
The XAU/USD price chart which measures the value of gold against the US dollar has shown a bullish price pattern maintained until the price has crossed the 1900.00 level at the end of last week.
The initial rise continued in the Asian session this morning reaching a height of around 1929.00 at the same time becoming the highest level in 9 months.
However, prices pulled back in trades that continued into the European session after reaching those heights.
Even so, analysts still see the price of gold will continue to be driven high by the bullish movement signal of the price still hovering above the support level of the Moving Average 50 (MA50) in the 1-hour time frame on the XAU/USD chart.
After passing 1900.00, the next gold price is expected to go to a higher target which is at the level of 1950.00.
If successfully passed, the price of gold has the potential to reach the height of 2000.00 as the main focus zone.
However, if there is a retracement below the 1900.00 level and a break through the MA50 support level, be alert for an impending trend change.
If the price of gold falls lower, the price is seen to return to the 1870.00 level before continuing to shrink to the 1830.00 zone.
