The gold market reached another significant psychological level, with prices back at $1,850 an ounce. The precious metal is gaining new bullish momentum as the US dollar is under further selling pressure, analysts say.

The US dollar index, after reaching a 20-year high two weeks ago, fell yesterday to a monthly low of 102, more than 2%.

Meanwhile, gold prices, after rebounding from support below $1,800 an ounce last week, are up nearly 4%.

Even though gold prices have risen, investors need to continue to monitor the US dollar and bond yields.

After European Central Bank President Christine Lagarde outlined the central bank's path to normalize monetary policy on Monday, the US dollar lost ground. Lagarde is now laying the groundwork for raising interest rates in July.

The US dollar has a lot to lose, analysts say, as the monetary policy gap between the Federal Reserve and the ECB begins to narrow.

However, some analysts still expect the US dollar to continue its upward trend as interest rates remain higher than in Europe.

Some analysts see opportunities for the US dollar and gold to rise together, especially as stock markets remain volatile.

But many analysts see further weakness as corporate earnings face inflationary headwinds and growing fears of a recession.