Investment banking giant Goldman Sachs has issued a forecast that no interest rate hike will be implemented by the Federal Reserve (Fed) at its March meeting.
This follows the collapse of Silicon Valley Bank (SVB) last week as it was affected by the Fed's previous continuous interest rate hikes.
The US dollar suffered a significant decline with the market's reaction to the crisis in addition to the dismal reading of the United States (US) NFP employment data report published last Friday.
While the US dollar weakened significantly, the gold commodity asset experienced a significant jump in value before the close of trading at the end of last week.
This can be observed on the XAU/USD chart which measures the value of gold against the US dollar.
The price initially hovered slowly around 1830.00 then it has surged up to the concentration level of 1870.00 at the close of the last session last week.
Continuing the trade at the opening earlier this week, the price started to open above the 1870.00 level with an increase to the level around 1890.00.
Approaching the 1900.00 concentration level, the rise in gold prices is expected to continue breaking through that resistance before continuing the climb to the latest high.
The next target is the height zone of 1950.00 which was previously reached by the price during the trade at the end of January.
For the expectation of the price falling again, if it falls below 1870.00, it is likely that the price will go back to the 1830.00 level when the price surge started last Friday.
A lower dip could signal a bearish trend reversal again for gold trading.
