Finally, gold trade managed to break through the thick wall at the $2,000 level as it displayed a powerful surge yesterday to record a new high.
The sentiment that is still driving the decline of the US dollar continues to open up space for gold assets to increase in value this week.
Analysts also see that there are no factors that can change the movement trend of the US dollar for now, therefore gold has the potential to continue its surge to higher levels.
If you look at the XAU/USD chart which measures the value of gold against the US dollar at the moment, the price has successfully jumped past the critical level of 2000.00 on Tuesday yesterday.
The surge in the New York session reached a recent high of 2024.00 before prices leveled off around that until continuing into the Asian and European sessions today (Wednesday).
The price movement that remains above the Moving Average 50 (MA50) level on the 1-hour time frame on the XAU/USD chart suggests that the move higher will continue.
The next target is for gold to reach a height of 2070.00, the level that was reached last March 2022 when the events of the Russian-Ukrainian war broke out.
Gold's all-time high was around 2075.00, reached in August 2020.
If the price of gold plunges again, the 2000.00 level will be targeted again and will likely function as the latest RBS (resistance become support) zone that can bounce the price up again.
If the price continues to break through lower, the decline could reach the 1950.00 zone again, among the previous price focus levels.
