Dealing with the worse fall of the US dollar currency yesterday, gold trading showed a strong surge putting a smile on the face of investors.
A dovish statement was delivered by Federal Reserve (Fed) governor Christopher Waller on Tuesday yesterday regarding the central bank's monetary policy.
He who is known to be 'hawkish' has seen the need for the Fed to start considering measures to lower interest rates in the near term.
The US dollar fell significantly after that even though initially the United States (US) consumer confidence data was published with positive readings.
Observing the price movement on the XAU/USD chart which measures the value of gold against the US dollar, the price movement since the beginning of the week has already been above the 2000.00 level.
In the Asian to European session yesterday, the price leveled off slowly around 2014.00 but was seen to remain moving above the Moving Average 50 (MA50) support level on the 1-hour time frame on the chart.
Later in the New York session, the price surged strongly and modestly broke through the concentration zone at 2030.00.
The price of gold reached its latest 6-month record high of 2050.00 at the start of the Asian session this morning (Wednesday).
However, until continuing to trade in the European session this afternoon, the price of gold is seen not to pass the level of 2050.00 that it touched, but retreated a little slowly.
Even so, analysts still see the tendency for gold prices to continue rising to higher levels.
The next target is likely to move at 2070.00 to 2080.00, which is the peak reached by the price during trading last May.
Investors remain alert to the risk of falling prices if profit-taking activity occurs in the market for the November trade close.
The price may dive back from the 2050.00 level before signaling a bearish move after that.
It is likely that the price will fall back below the 2030.00 zone before heading back to the previous concentration level at 2000.00.
