Recent geopolitical tensions have caused fluctuations in the markets. Therefore, it is not surprising that the gold market also feels this impact. Citigroup analysts predict that the shiny metal will likely surpass the $3,000 price in the coming months. Technical analyst Christopher Lewis says that gold should digest its recent gains.
“The gold price will reach $3,000 in the next 6-18 months!”
cryptokoin.comAs you follow from , gold prices have broken records recently due to the increasing geopolitical tensions. Moreover, the shiny metal continues to trade near its peak. This means “Are new peaks coming?” It brings to mind the question. Escalating tensions in the Middle East after Iran launched more than 300 drones and missiles at Israel appear to have sparked a new rally for gold, as Citi recently wrote.
Indeed, amid fears that this incident could escalate into a larger conflict, gold has renewed its reputation as a safe-haven commodity, especially as Israeli leaders have vowed to “extract a price” from Iran. Therefore, it is possible that purchases will increase in the next six months to one and a half years. Specifically, Citigroup’s expert team explained to clients in a recent note:
Gold’s latest rally has been fueled by geopolitical tensions and coincided with record stock index levels. (…) We predict a gold price of $3,000 in the next 6-18 months.
Short-term technical outlook: Will there be a pullback?
Experienced technical analyst Christopher Lewis evaluates the technical picture of gold in his unique style. Gold markets have gone back and forth, not least because of an attempt to ‘squeeze’ higher. All else being equal, I think this market should absorb some of these gains. Will there be a retreat? I certainly hope so. Because I would be more than willing to be receptive. The RSI is starting to retreat towards the 70 level. This suggests a potential return to normality. It could also be argued that there is some kind of strange divergence in the RSI. But regardless, gold is a very strong market for many reasons. So I think it will eventually continue to move higher.
Ideally, a pullback to the $2,200 level. But I don’t know if we can achieve this. Speaking of $2,200, the 50-day EMA is located just below it, as is the $2,150 support level. As a result, it is necessary to buy in the dip market until interest rates are brought under control, central banks stop buying gold and of course geopolitical tensions calm down, which I do not think will happen anytime soon. That’s why the rise continues. I have no intention of taking a ‘short’ position in this market. Even if you told me it would drop $200 tomorrow, I don’t know if I would make this trade. On the other hand, I’m very interested in collecting gold after it drops. So we’ll have to wait and see how things develop. But I’m a little too nervous right now!
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