The gold market traded higher at the opening of the week, due to less encouraging US national data on Friday and expectations of the Federal Reserve's (FED) decision to lower interest rates in September.
This has given an advantage to the gold market following the situation of the US dollar which has shrunk again.
Last week, consumer price index (CPI) and Producer Price Index (PPI) data came in with weak readings supporting the rise in gold prices.
In addition, the issue of economic recession that has arisen has caused investors to feel uneasy and shift investments to safe haven assets.
Increased demand for safe-haven assets has pushed the price of gold up to break new record highs.
Based on the daily chart, the price of gold is currently at its highest level in history and investors are still waiting for a clear signal on the direction of the gold price further.
On the XAU/USD chart which measures the value of gold against the US dollar, the price has reached 2506.00 after gaining momentum from the previous price level of 2367.00.
If the price wants to go down again, the 2495.00 level will be the target for the price to test the important zone.
Crossing the zone will signal the price decline to continue with the 2480.00 level being the next target.
For the price to do a bullish trend, it is quite difficult for investors to expect the next price target if the increase continues because currently the price of gold is at the highest level.
However, market analysts expect the price of gold to potentially rise to the level of 2600.00 for the most recent historical record.
