Ahead of the US consumer inflation report yesterday, gold investors are also anxiously awaiting the impact that will occur on the price of the yellow metal.
In line with the forecast, December inflation recorded 2.9%, which increased from the previous 2.7% level, which is seen as giving an advantage to the US dollar.
Investors observed price movements on the XAU/USD chart, which measures the value of gold against the US dollar.
Initially, the price increase reached the level of 2696.00 before falling back to around 2677.00.
As investors expected the price of gold to make a further decline, the price then rebounded back up towards the end of the New York session, reaching the previous level of 2696.00.
The price movement slowly hovered around that area when trading resumed in the Asian session this morning (Thursday) and moved to the European session, the price has managed to continue its rise beyond the target level of 2700.00.
This makes the new highest price achieved after surpassing the record in last week's trading for the highest in 5 weeks.
For higher expectations, gold prices will head towards the target at 2720.00 which is an important resistance level tested in November and December trading.
However, investors remain cautious with the uncertain market situation ahead of Donald Trump stepping foot in the White House next week to assume his duties as leader.
If there is a re-fall in gold prices, the zone around 2670.00 is seen as likely to be the focus again as at the beginning of last week.
A lower decline below that zone signals the risk of gold prices plunging with the price falling back to 2600.00.
