Since Donald Trump's inauguration in White House as President earlier this week, the US dollar has displayed a gloomy trading pattern until the end of the week.
This situation has given room for gold to also trade excellently, reaching a new 3-month high.
Gold investors are also assessing the market situation regarding President Trump's administration's policies on the commodity market.
If judged on the XAU/USD price chart that measures the value of gold against the US dollar, the price reached the level of 2763.00 last Wednesday.
On Thursday, the price fell slightly before rebounding from the level of 2740.00 to resume the upward trend towards the end of the New York session.
The surge continued in the Asian session this morning (Friday) exceeding the target level at 2770.00 for the latest 12-week high recorded around 2778.00.
The price that remains above the Moving Average 50 (MA50) support line on the 1-hour time frame on the XAU/USD chart still shows a bullish signal for gold.
However, investors will be cautious when trading in the sessions at the end of this week with the possibility of profit-taking activities that could trigger a price reversal.
If the price still manages to continue its rise, the 2800.00 level will be the target to be reached.
However, the price must first overcome the height of 2790.00 recorded in October 2024 which is the highest gold price record of all time.
On the other hand, if the price shows a decline below 2770.00, the RBS (resistance become support) zone at 2720.00 is seen to be approached again.
If the price breaks below that zone, the decline will continue lower with the target moving to 2670.00.
