The price of gold showed a recovery on Wednesday's trading yesterday after showing warning signs of a fall last Tuesday.
The strengthening momentum of the US dollar does not seem to have succeeded in continuing at the same time reducing the pressure on gold.
Thus, gold prices are back on track to hunt for new record highs after hitting an all-time high last Friday at $2,195.
Examining the XAU/USD chart which measures the value of gold against the US dollar, the price which made a decline last Tuesday has reached around 2151.00 before showing an increase again on Wednesday yesterday.
A high of around 2180.00 was reached at the end of the New York session and investors began to assess bullish signals for gold again as prices began to move above the Moving Average 50 (MA50) support line on the 1-hour time frame on the chart.
A slow bearish pattern was displayed starting in the Asian session this morning continuing into the early European session with the price hovering around 2168.00 and retesting the MA50 support.
If the rally continues, investors would like to continue to see gold break new record highs after this.
The target at the level of 2200.00 is not impossible to reach, in fact the price could possibly go higher.
However, if the decline occurs, the price of gold is expected to reach the concentration level at 2144.00 and investors are waiting for the reaction that will be shown by the price.
With the factors again putting pressure on gold, the risk of a price drop will be higher and investors will start to be careful for the change in the trend.
