Once again to the surprise of investors this week, gold prices soared high almost reaching all -time highs (ATH) levels recorded in August 2020 last.
The XAU/USD price chart which measures the value of gold against the US dollar came into focus yesterday when the price which had initially passed the 2000.00 level in the Asian session finally ended the climb to touch the 2070.00 high.
The level has been targeted by market analysts before but came as a bit of a surprise to investors when the price of gold rose to that level with a shorter higher than expected period.
This is as the attraction of gold safe-haven assets continues to increase amid concerns over the crude oil market which could influence inflationary factors.
After reaching the 2070.00 level in the New York session, the price rebounded and flattened below that level until trading resumed into the Asian and European sessions today (Wednesday).
The gold price movement is still in a bullish trend moving above the support level of the Moving Average 50 (MA50) on the 1 -hour time frame on the XAU/USD chart.
Investors are increasingly optimistic for the price of gold to record its latest all -time high above the 2074.00 level reached in August 2020 if the price rise continues.
But beware if there is a signal for the price of gold to start plummeting again after the high price spike is displayed.
The decline is seen to return to the level of 2000.00 and could possibly be a support level for the price.
A decline beyond the MA50 support level will provide an early indication of a change in the bearish trend for gold.
The RBS (resistance become support) zone at 1970.00 will also be the focus before the continued lower decline will lead to around 1950.00 and the focus levels in previous weeks.
