Gold trading continued to strengthen to higher levels today (Wednesday) maintaining the excellent pattern that was exhibited last week.
The US dollar's continued depreciation situation since the beginning of the week is increasingly opening up space for gold to shine brighter.
After successfully surpassing the $2,700 level, the price has continued to rise and also surpassed the high level last week.
Price movements on the XAU/USD chart, which measures the value of gold against the US dollar, were observed after Donald Trump has now begun his duties as the new President of the United States (US).
Slowing at the 2720.00 level yesterday, the price then rebounded to continue the rise to reach the 2745.00 level in the New York session.
The rise continued in the Asian session this morning (Wednesday) until the height of 2758.00 was reached before retreating slightly to the opening of the European session.
The price movement remains in a bullish trend moving above the Moving Average 50 (MA50) support line on the 1-hour time frame of the XAU/USD chart.
The target for a higher increase is to reach 2770.00 for the latest 12-week high.
If the price of gold plunges, the 2720.00 level will return to the focus for the price to react to the RBS (resistance become support) zone.
A fall lower will give a bearish signal for the price of gold to risk a decline, possibly heading back to around 2670.00.
