Good news for gold investors as the price of the yellow metal soared even higher on Thursday yesterday.
Gold has managed to overcome last week's price level around $2,030 and the surge in yesterday's New York session continued to reach a new high around $2,048.
This is the highest level of gold prices reached since last March 2022.
The factor driving the situation is none other than the depreciation of the US dollar which gives room for gold to rise.
After the consumer inflation data was scrutinized bleakly, the United States (US) producer inflation data published yesterday also declined, further strengthening expectations for the Federal Reserve (Fed) to end their policy tightening.
Thus, with the expectation that the US dollar will continue to move weakly until next week, increasing the potential for gold to reach an all-time high (ATH) that is approaching.
If examined on the XAU/USD chart which measures the value of gold against the US dollar, the price slowed down today (Friday) after reaching the latest high level yesterday.
The price increase if continued is seen to lead to the level of 2070.00 which is the level recorded in the March 2022 increase.
If the price succeeds above that height, the ATH record at 2075.00 which was reached in August 2020 when the Covid-19 pandemic first occurred, will be challenged.
But investors remain cautious if there is a price drop in trading at the end of this week.
The price is likely to return to around 2030.00 again testing the latest RBS (resistance become support) zone.
If the breakout is lower, the price of gold could drop back to the previous concentration level at 2000.00.
