The latest all-time high (ATH) for the price of gold was successfully recorded yesterday reaching a height of up to $2,740.
However, the price again showed a decline in trading in the New York session yesterday as the strengthening of the US dollar put pressure on it again.
The US dollar managed to find its strengthening pace again at the opening of the week after the momentum faded at the close of last week.
Looking at the movement on the XAU/USD chart which measures the value of gold against the US dollar, the price has reached a high of 2740.00 before the dip shown in the New York session.
The price drop reached around 2714.00 towards the end of the session before gradually increasing again in the Asian session this morning (Tuesday).
The drop in gold prices was seen testing the Moving Average 50 (MA50) support line on the 1-hour time frame on the XAU/USD chart before rebounding.
This shows the signal for the price of gold still tends to continue its upward trend to higher levels.
If the price increase continues, it is not impossible to see a new record created again by maintaining the momentum of last week's trading.
The 2740.00 level may be overcome before the price is driven higher. Analysts put a new target around 2770.00 to aim for.
However, be careful if the price starts to move down below the MA50 support line which will be an early signal of a change in price direction.
If the decline occurs, the expectation is for the concentration zone at 2670.00 to return to the price again before the reaction around it will give further direction.
