The impact of the NFP jobs data report published last Friday triggered a surge in the price of gold to the highest level in its all-time history.
The situation that drove the continuous rise of gold over the past week was due to the depreciation of the US dollar.
At the end of last week, the price of gold reached a high of around $2,195, which became an all-time high after the price increase successfully surpassed the record reached in December 2023 which was around $2,144.
The presence of economic data from the United States (US) which started to cause concern refocused the interest rate reduction measures that need to be implemented by the Federal Reserve (Fed).
If the market continues to move on that track, the US dollar is at risk of experiencing further depreciation and will continue to give an advantage to gold trading.
Investors examine price movements on the XAU/USD chart which measures the value of gold against the US dollar.
After the price made an increase above the 2144.00 level, the bullish pattern was maintained until the end of the week.
Analysts were targeting a rise to the 2200.00 level, but the price reached a height around 2195.00 for a recent record high.
Continuing the trade earlier this week, gold prices were flat around 2180.00 so far this evening in the European session.
The price movement remains in a bullish trend that is above the Moving Average 50 (MA50) support line on the 1-hour time frame on the chart.
If the situation does not change, the price of gold has the potential to continue breaking the current price record to hunt for higher levels after this.
The 2200.00 level is likely to be broken and continue to reach levels never seen before.
However, be alert if the price of gold starts to show signs of decline, market players are also ready to act to take profits on previous positions.
The initial drop in price is expected to be towards the 2144.00 level which becomes an important focus before a more clear bearish signal can push below 2100.00.
