Today's US CPI report cracked open the door to Fed rate cuts once again today and has led to a broad round of US dollar selling. So it's no surprise to see gold catch a bid in the aftermath, but how high can it go?

It's up $31 today to a session high oat $2389.

In two different days in April, it had a peek above $2400 and even touched a high of $2431 before a nasty intraday reversal on April 12. In some markets, that would have signaled the end but gold has found a footing with the help of the Fed, Asian buyers and softer inflation.

Gold daily
Gold daily

The first level I'm watching is $2390, which was the record high close in April. If we can get a close above there, followed by one above $2400, then I'd be comfortable chasing the trend to a new all-time high.

Further confirmation would come from more US dollar selling and the euro in particular looks like it might be ready for another run at 1.10.