The surge in gold prices that occurred last Friday did not stop at that point when investors saw that momentum was successfully maintained at the opening of trading earlier this week.
If at the end of last week the price of gold jumped past the level of $2,080, yesterday the price of gold continued to rise until breaking through the level of $2,100.
The continued dismal performance of the US dollar opens the door for gold to move higher, but investors will remain cautious pending key data releases this week.
The main focus affecting the US dollar and gold is the United States (US) NFP employment data report at the end of the week.
Examining the XAU/USD price chart which measures the value of gold against the US dollar, the price rise is seen to continue and is getting closer to an all-time high.
If you look at the movement on Monday yesterday, the price flattened slowly above the 1080.00 level before the surge in the New York session.
The price made an increase until it reached the 2119.00 level before the price started to level off around that until trading continued today.
The Asian and European sessions still remain slow with the expectation that the price of gold will continue to rise.
The target is for gold prices to head towards the all-time record high reached in December last year around 2144.00.
Be careful if the price of gold plunges again and signals a change in the bearish trend.
The closest target for the downside is a return to around the 2080.00 zone.
