Gold trading presented a surprise opening early this week after investors were excited by the pattern of price movement at the close of last week.
The US dollar remains the driver of the gold price movement which continues to record recent highs.
Examining the XAU/USD price chart that measures the value of gold against the US dollar, the price that hovered horizontally below the 2050.00 level last week has managed to surge in the last session to reach the 2070.00 price level.
It did not stop there, the price of gold rose so significantly at the opening of the Asian session at the beginning of this week that the price broke through around 2140.00.
Creating new history, this became the record for the highest price that gold has ever recorded (all-time-high).
However, moving to trading entering the European session, the price of gold plummeted again, reducing the previous gains.
In fact, the price plunged lower past the 2070.00 level and is seen heading towards the 2050.00 concentration level again.
A drop to the 2050.00 level will also test the Moving Average 50 (MA50) support line on the 1-hour time frame on the XAU/USD chart which will signal investors to be ready if a change in the price trend is about to occur.
If the penetration is lower, a further decline in gold will be expected to return to the focus zone in November trading.
Among those that will be the price target is around 2030.00 or lower which is at the important zone of 2000.00.
However, if the price surge is exhibited again, the price will again maintain the bullish momentum and reach the 2140.00 high level again.
And it is also not impossible for the price to continue hunting for the latest record of the highest peak of ATH with the situation of the depreciation of the US dollar and the advantage to gold.
