The surge in gold prices that began last Tuesday continued into the end-of-week trading showing that the attraction to the safe-haven asset is still there.
The market atmosphere remains uncertain, driving investor appetite for gold, while the US dollar is experiencing a decline this week.
This is due to the focus on President Donald Trump's massive tax cut plan, which is feared to put additional pressure on the United States (US) economy.
Previously, Moody's had downgraded the US government's credit rating from 'AAA' to 'AA1' due to concerns about the high US national debt.
If you look at the movement of the XAU/USD chart, which measures the value of gold against the US dollar, the price began to rise from the level near 3200.00 on Tuesday after leveling off the previous day.
The price surge exceeded the level of 3300.00 and continued the upward trend in the Asian session this morning (Thursday), reaching a high of around 3345.00.
The price then retreated slowly to continue trading in the European session to around 3220.00.
With the price movement still hovering above the Moving Average 50 (MA50) support line on the 1-hour time frame on the XAU/USD chart, the tendency is for the gold price to continue climbing higher.
If the rise continues, the price will head towards the 3400.00 level before the target shifts to the gold record high at 3500.00.
On the other hand, if the price falls below 3300.00, investors should watch for signs of a possible gold price trend change.
An extended decline below 3270.00 is likely to return to targeting the 3200.00 level.
