Gold trade remained positive at the opening of the week as the attraction to safe-haven assets continued to increase as the market continued to be plagued by fears of a global banking crisis.
Putting a smile on the face of investors, the price of gold has surged to the $2,000 level after trading entered the European session today.
This situation shows that the US dollar is still traded weakly in the market and remains pushing the price of gold to continue to rise.
The XAU/USD price chart which measures the value of gold against the US dollar sees the bullish trend still continuing after the surge at the end of last week past the 1950.00 resistance.
The price remained above the Moving Average 50 (MA50) support level on the 1-hour time frame on the XAU/USD chart entering the third week, indicating that the price movement still has the potential to go higher.
However, investors need to be prepared for any change in the direction of gold price movement at any time.
The price movement is still being examined whether it is able to remain at the 2000.00 level and continue climbing higher.
If the price of gold plunges again, the price will return to around 1950.00, the resistance that was successfully broken last week.
A drop below that level will signal a bearish trend change for gold is about to begin.
But if the price of gold maintains its upward momentum, the next target level to reach is at the height of 2070.00 which was successfully touched in March 2022, when the Russian-Ukrainian war broke out.
The highest level ever recorded was around 2075.00 reached in August 2020 when Covid-19 hit the world.
