Gold (XAU/USD) daily chart
The precious metal is trading up today to record highs, seen at $2,953 at the moment. It is now poised for another week of gains and that will make it eight on the trot to start the new year. The latest gains are coming as the dollar is also slightly weaker but amid persisting geopolitical tensions and central bank buying, it’s hard to find a case against gold still.
The next target? The $3,000 mark of course. That’s the big one in terms of a psychological barrier for the precious metal.
After having touched the previous big one of $2,000 during the Covid pandemic, gold struggled to really break the shackles until last year. That’s a lengthy period of bouncing around in the last few years before finally catching fire.
Will this time be different though?
I have a feeling it might. As is the case since last year, the only argument I have against gold is purely a technical one.
The rise to where we are now has been breathtaking and really one-sided in terms of momentum. That argues for a correction of sorts but we’ve not got that whatsoever until now.
Besides that, the same conditions are all lining up for gold with major central banks still easing policy (albeit more slowly) and Trump is still doing his thing on the global stage – stirring up uncertainty and geopolitical tensions. Then, you still have major central banks – China in particular – still stocking up on gold reserves. And that’s a big plus point as well.
I wouldn’t rule out a good bout of profit taking upon hitting $3,000. But if we easily shoot past that, we might see gold touch $3,100 or $3,200 before the next real pullback.