Gold traded brilliantly on Tuesday yesterday as the latest high was reached around $1,850 for a new 7-month record high.
However, the record was successfully overcome again today when gold continued to maintain its positive performance.
Unlike the strengthening of the US dollar in the European session yesterday, this afternoon's European session witnessed a decline in the king of the currency while continuing to open up space for gold to rise.
On the XAU/USD price chart, which measures the value of gold against the US dollar, the price of gold, which reached the level of 1850.00, dropped back to the 1830.00 zone as expected.
However, the level that was previously an obstacle for the price now functions as a support that keeps the price from falling lower.
Continuing today's trading, the price has continued its ascent and surpassed the 1850.00 high reached yesterday.
As of 4pm local time, gold prices have reached a high of around 1858.00 and are seen targeting the 1870.00 zone.
This is the highest level reached since trading last June 2022 and if the price breaks through 1870.00, the higher target is to reach the level of 1900.00 for gold.
But be careful if the price jumps again, the RBS zone (resistance becomes support) 1830.00 will again be the focus to be tested.
A drop beyond that zone will provide an indication of a bearish trend change for gold before it is expected to return to around 1800.00.
